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thanks As CFO of Ace-Pak, you have successfully negotiated with BlackSand Bank in an effort to reduce the interest rate by 50 basis points from
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As CFO of Ace-Pak, you have successfully negotiated with BlackSand Bank in an effort to reduce the interest rate by 50 basis points from 6.5% on the company's $2 million of Long Term Notes, thereby decreasing interest expense. If nothing else changes, what will be the effect on NOPAT due to lower interest expense? O NOPAT will increase It depends upon the siutation ONOPAT will decrease by $10,000 @ NOPAT will decrease NOPAT will not change Ace-Pak starts the year 2021 with $800,000 in Invested Capital. Greg, the CEO, insists on a target EVA for the year 2021 equal to $16,000. If it has a cost of capital (c) of 10%, what ROIC (r) must Ace-Pak earn in 2021 in order to achieve that target EVA? O 7% O 10% 0 11% 0 8% 1296 1. Which of the following factors is always a good indicator of whether a firm is adding value? 1 - Positive Net Income I1 = Increasing Return on Equity III - ROIC greater than the Cost of Capital IV - Consistent positive growth rate 1, & 10 lll only @ IV only Dull only All of them Step by Step Solution
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