Question
the following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125 current
the following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125
current liabilities $170000
operating income $176200
NBV long term assets (end year 3) $687500
current assets $300000
GROSS BOOK VALUE $1100000
estimated total useful life 8 years
Age of assets 4 years
construction cost index end of year 4 150
of long term assets at historical cost
what is the current cost annual depreciation in year 4 dollars?
1-$440000
2-$240000
3-$165000
4-$295000
5-$200000
question 5
Waldorf Company has two sources of funds: long-term debt with a market and book value of $9 million issued at an interest rate of 10%, and equity capital that has a market value of $6 million (book value of $2 million). The cost of equity capital is 5%, while the tax rate is 30%.What is the EVA for St. johns?
operating Income before tax assets current liabilities
ottawa $480000 $2000000 $100000
st johns $600000 $4000000 $300000
regina $1020000 $6000000 $600000
what is EVA for ST. Johns ?
1-$190600
2-$145000
3-$310600
4-$142200
5-$200000
please provide answer for the 2 question with calculations
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