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Scranton Shipyards has $12 million in equity, $10 million in LT debt and $2 million in notes payable. Scranton Shipyards after-tax cost of capital is
Scranton Shipyards has $12 million in equity, $10 million in LT debt and $2 million in notes payable. Scranton Shipyards after-tax cost of capital is 9% and the tax rate is 40%. Sales are $10 million with depreciation of $2 million, cost of goods sold of 45% of sales and other operating costs of $1,500,000. Interest expense is $2,000,000. a. Find NOPAT. b. What is Scranton's EVA
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