Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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).
image text in transcribed
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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The 30 Minute Stock Trader

Authors: Laurens Bensdorp

1st Edition

1619615738, 978-1619615731

More Books

Students also viewed these Finance questions

Question

b. Explain how you initially felt about the communication.

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago

Question

a. When did your ancestors come to the United States?

Answered: 1 week ago