Question: Scranton Shipyards has $20 million in total invested operating capital, and its WACC is 10%. Scranton
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Question:
Question:
Scranton Shipyards has $20 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement:
Sales | $10.0 million |
Operating costs | 6.0 million |
Operating income (EBIT) | $4.0 million |
Interest expense | 2.0 million |
Earnings before taxes (EBT) | $2.0 million |
Taxes (40%) | 0.8 million |
Net income | $1.2 million |
What is Scranton's EVA?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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