Calculate EVA and simplified ROIC tree Certain company has: a) Book value of fixed assets = 1000

Calculate EVA and simplified ROIC tree

  

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Certain company has: a) Book value of fixed assets = 1000 b) Book value of current assets = 1000 c) Cash = 200 d) Account payables = 200 e) Accruals = 100 f) EBIT = 400 g) Tax rate = 20% h) Debt (interest bearing) = 100 i) Bond (issued = debt) = 100 j) Sales = 100 k) Market value of equity = 700 1) Cost of equity =12% m) Cost of debt = 8% Certain company has: a) Book value of fixed assets = 1000 b) Book value of current assets = 1000 c) Cash = 200 d) Account payables = 200 e) Accruals = 100 f) EBIT = 400 g) Tax rate = 20% h) Debt (interest bearing) = 100 i) Bond (issued = debt) = 100 j) Sales = 100 k) Market value of equity = 700 1) Cost of equity =12% m) Cost of debt = 8%

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Okay here are the calculations for EVA and ROIC tree 1 Capital invested C... View the full answer