Question
Togal Machine Tool Inc. had $5,000,000 last year in operating income. The company had depreciation expense of $1,000,000, interest expense of $875,000 and assumes its
Togal Machine Tool Inc. had $5,000,000 last year in operating income. The company had depreciation expense of $1,000,000, interest expense of $875,000 and assumes its after tax cost of capital is 10%. The companys tax rate is 40%. Assume the company has a total of $15,000,000 in shareholders equity, $15,000,000 in long-term bonds and $2,000,000 in preferred stock.
-What is the companys EVA?
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Ouch What You Dont Know About Money And Why It Matters More Than You Think
Authors: Paul Knott
1st Edition
0133527077,0273788752
