Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income Assets BALANCE SHEET (Figures in $ millions) $886.00 746.00 36.00 The company's cost of capital is .08%. $104.00 17.00 $ 87.00 30.45 $ 56.55 Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity End of Year $ 374 268 $ 642 $ 199 113 330 $ 642 Start of Year $ 322 227 $ 549 $ 162 126 261 $ 549 Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income Assets BALANCE SHEET (Figures in $ millions) $886.00 746.00 36.00 The company's cost of capital is .08%. $104.00 17.00 $ 87.00 30.45 $ 56.55 Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity End of Year $ 374 268 $ 642 $ 199 113 330 $ 642 Start of Year $ 322 227 $ 549 $ 162 126 261 $ 549
Expert Answer:
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
Students also viewed these accounting questions
-
Financial Ratios. Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in S millions) Net sales 13,193 Cost of goods sold 4,060 Other expenses...
-
Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,900 Cost of goods sold 4,460 Other expenses 4,197 Depreciation...
-
Here are simplified financial statements for Phone Corporation in a recent year: Calculate the following financial ratios for Phone Corporation: a. Return on equity b. Return on assets c. Return on...
-
Explain incremental cash flow, externality? Why is timing of cash flows important? What is scenario analysis? Would a project's NPV for a firm be higher or lower if the firm used accelerated rather...
-
Imports of Japanese automobiles in the United States have been a major contributor to the annual U.S. trade deficit. U.S. automobiles and auto parts have not sold very well in Japan either. Access to...
-
Design the geometry of a hydrostatic bearing to carry a load of 1000000 lbs. If the design constraint allows use water as the lubricant. Other details The inlet temperature is 100F Take the viscosity...
-
What are the primary categories of a risk?
-
Wallowa Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value . Annual cash inflows...
-
The year-end financial statements of Cobra Tax Services are provided below. Service revenue Expenses: Salaries Utilities Insurance Supplies Net income COBRA TAX SERVICES Income Statement $ 74,500 $...
-
Ivanhoe Ltd. purchased a new machine on April 4, 2017, at a cost of $188,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for...
-
Bradley, an accountant, needed new office equipment. One of his clients owns a computer store and offered to provide the equipment of Bradley's choice in exchange for a full year of bookkeeping...
-
. Why is it important to ensure that your financial management software is suitable for your business?
-
Objective: https://codeshare.io/8pMyMZ 1. How would the process reflected in KnightPStp2 be done in TicTacToePStp2 based upon objective? KnightPStp2: https://codeshare.io/VZ09mR TicTacToePStp2:...
-
16. A random sample of 25 housewives showed that they spend an average of 35 hours a week on household chores with a standard deviation of 4.5 hours. Assume that the number of hours spent on...
-
As a financial analyst, you are required to value a company which has expected earnings before interest and taxes (EBIT)of RM26 million every year beginning in one year. The depreciation is expected...
-
Explain the concept of regulatory requirements and why they are important. Identify and describe briefly any four of the legislations that typically form the regulatory requirements for businesses in...
-
You are looking to buy a strip mall that generates: Y1: $2,500,000 Y2: $2,600,000 Y3: $2,800,000 Y4: $2,900,000 I f you paid $18,000,000 for the property and sold it at the end of year 4 for...
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
BMM Industries pays a dividend of $2 per quarter. The dividend yield on its stock is reported at 4.8%. What price is the stock selling at?
-
Emperor's Clothes Fashions can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year....
-
If Planner's Peanuts dividend payout ratio in Problem 9 is fixed at 50%, calculate the required total external financing for growth rates in 2016 of 15%, 20%, and 25%.
-
A flow of nitrogen is discharged from a duct with \(M_{2}=0.85, T_{2}=500^{\circ} \mathrm{R}\), and \(p_{2}=28\) psia. The temperature at the inlet is \(560^{\circ} \mathrm{R}\). Compute the pressure...
-
Consider the flow of a perfect gas along a Fanno line. Show that the pressure at the * reference state is given by the relation 1/2 m 2RT, P Ayge(y+1)
-
Air enters a duct with a mass flow rate of \(35 \mathrm{lbm} / \mathrm{sec}\) at \(T_{1}=520^{\circ} \mathrm{R}\) and \(p_{1}=20 \mathrm{psia}\). The duct is square and has an area of \(0.64...
Study smarter with the SolutionInn App