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You are presented with the following data for a company: .EBIT: $800,000 WACC: 15% Total net operating capital (operating capital): $4,000,000 Tax rate: 20% Shares
You are presented with the following data for a company: .EBIT: $800,000 WACC: 15% Total net operating capital (operating capital): $4,000,000 Tax rate: 20% Shares outstanding: 10,000 Stock price: $25 Total common equity: $175,000 Receivables: $150,000 Sales: $2,500,000 . Dividends: $44,000 Accrued wages: $45,000 Using the relevant information, calculate the Economic value added (EVA). Clearly label your findings (e.g., xyz ratio = .....) and designate which part of the question you are answering (if there are multiple parts). Write out your equations clearly. Show your work by typing it in Canvas. Answers (whether correct or incorrect) without work shown will receive zero points. Simply typing your work will suffice. (e.g., x = y + 2z). No need to use mathematical functions in Canvas. In each part of the question (when there is a calculation): Leave four decimal places in intermediate steps. Leave four decimal places for the final answer (only two decimal places if it is a dollar amount).
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