Question
Last year, McDonalds had the following financial data. Corporate Tax rate 40% Operating Current Assets $2,800,000 Operating Current Liabilities $ 800,000 Earnings before interest and
Last year, McDonalds had the following financial data.
Corporate Tax rate 40%
Operating Current Assets $2,800,000
Operating Current Liabilities $ 800,000
Earnings before interest and taxes $1,000,000
Net depreciation $ 200,000
Interest expense $ 200,000
Net plant and equipment $3,000,000
After tax cost of capital 10%
What was the company's net income (NI)for the year?
What was the company's net cash flow?
What was the company's net operating profit after taxes (NOPAT)?
If the capital was $1,000,000 what was the economic value added (EVA)?
What was return on invested capital (ROIC)?If WACC was 5% is the firmadding value? Explain
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