The Ronayne Corporation has on its balance sheet $5 million in net operating working capital and $37 million in net fixed assets. The company's
The Ronayne Corporation has on its balance sheet $5 million in net operating working capital and $37 million in net fixed assets. The company's weighted average cost of capital is 8.5 percent. The company has the following income statement: Sales $25,000,000 17,625,000 Depreciation & Amort 1,000,000 $ 6,375,000 Operating costs EBIT Interest 2.325,000 $ 4,050,000 1,012,500 $ 3,037,500 EBT Taxes (25%) Net income What is Ronayne's EVA (above)?
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Authors: Lawrence J. Gitman, Chad J. Zutter
14th edition
133507696, 978-0133507690
