Question: This problem continues the Draper Consulting, Inc., situation from Problem 23-39 of Chapter 23. Draper Consulting reported 2013 sales of $3,750,000 and operating income of

This problem continues the Draper Consulting, Inc., situation from Problem 23-39 of Chapter 23. Draper Consulting reported 2013 sales of $3,750,000 and operating income of $210,000. Average total assets during 2013 were $600,000 and total liabilities at the end of 2013 were $180,000. Draper’s target rate of return is 14% and WACC is 7%. Its 2013 tax rate was 36%.
Requirement
1. Calculate Draper’s profit margin, asset turnover, and EVA for 2013.

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Req 1 Profit margin Operating income Sales Drapers profit margin for 2013 is 560 210... View full answer

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