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L Scranton Shipyards has $10 million in equity, $8 million in LT debt and $2 million in ST debt, and its Cost of Capital is
L Scranton Shipyards has $10 million in equity, $8 million in LT debt and $2 million in ST debt, and its Cost of Capital is 9%. Scranton has the following income statement: Sales $10.0 million Operating costs and depreciation 6.0 million Operating income (EBIT) $ 4.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 2.0 million Taxes (40%) 0.8 million Net income $ 1.2 million What is Scranton's total invested capital What is Scranton's EVA
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