Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kwill Pens, Inc. produces the following income statement and balance sheet for the year. The company has a tax rate of 35% and a cost
Kwill Pens, Inc. produces the following income statement and balance sheet for the year. The company has a tax rate of 35% and a cost of capital of 10.75%. Income Statement ($ millions) Balance Sheet ($ millions) Net sales $2,700.00 Assets Expenses 680.00 Current assets $ 1,350.00 Depreciation 340.00 Net fixed assets 2,025.00 EBIT $1,680.00 Total assets $3,375.00 Interest expense 510.00 Taxable income $ 1,170.00 Liabilities & Owner's Equity Taxes (35%) 409.50 Current liabilities $ 1,080.00 Net Income $ 760.50 Long-term debt 1,485.00 Owner's equity 810.00 Total liabilities and equity $3,375.00 a. What is the company's after-tax operating Income? (Enter your answer in millions and round to two decimal places.) After-tax operating income million b. What is the company's total capitalization? (Enter your answer in millions and round to two decimal places.) Total capitalization million c. What is the company's economic value added? (Enter your answer In millons and round to two decimal places.) Economic value added million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started