Question: 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

Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter

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

Step by Step Solution

★★★★★

3.43 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related 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...

Need help with this question Homework: 2.5 no Ints eBook Print Measuring Corporate Performance Assi... 0 Saved Help Save BALANCE SHEET (Figures in $ millions) End of Start Year of Year Assets Current...

The companys cost of capital is 8.5%. a. Calculate Watervans economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What...

Have some finance questions from Homework, please advise QUESTION 1 In 2014 Electric Autos had sales of $195 million and assets at the start of the year of $340 million. If its return on...

Here are simplified financial statements for Watervan Corporation INCOME STATEMENT (Figures in s 1111ans) Net sales Cost of goods sold Depreciation Earnings before Interest Cake (EBIT) Tnterest...

Please see Week 7 assignment document attached Thank you 1. Here are book and market value balance sheets of the United Frypan Company (UF): Book Net working capital Long-term assets $ 20 $ 40 80 60...

I need, I am working on GENERAL ELECTRIC AND UNITED TECHNOLOGIES CORP, I need help GE and UTC Financial Statements Forecast for the next 5 year using the attachment. Throughout this course you will...

Complete the following problems from Chapter 12 in Financial Management: Theory and Practice : Chapter 12: Topics: Additional Funds Needed, Forecasted Statements and Ratios, Financing Deficits...

Information concerning SMC Corporations intangible assets is as follows. i. SMC incurred Tk 650,000 of experimental and development costs in its laboratory to develop a patent that was granted on...

What are extraordinary items? How are they shown on the income statement? Why are they shown in that manner?

Traffic engineers will consider turn restrictions when ( ) 1 5 0 cars per hour. Find all values of t for which ( ) 1 5 0 . Give your answer to 3 decimal places

The intensity of the toroidal magnetic field in a tokamak is proportional to the inverse of major radius (B~1/R). In ITER, the toroial magnetic field is at the magnetic axis (R = Ro ) is 5.3 Tesla....

How can you decrease the sampling error (accuracy)?

How are you going to attend and balance all responsibilities in your life without compromising each of them?

The tensile strength of Portland cement is being studied. Four different mixing techniques can be used economically. A completely randomized experiment was conducted. and the following data were...

Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account, with over 300 customer...

Kay has an 80% probability of making a free throw in basketball, and each free throw is independent. Kay gets to take 2 free throws and must make both to win the game. What is the probability that...

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%.

For each of the models listed below, predict y when x = 2. a) ln = 1.2 + 0.8x b) = 1.2 + 0.8x c) 1 / = 1.2 + 0.8x d) = 1.2 + 0.8 lnx e) log = 1.2 + 0.8 logx

In the chapter's example, 20% of the cereal boxes contained a picture of Hope Solo, 30% Danica Patrick, and the rest Blake Griffin. Suppose you buy five boxes of cereal. Estimate the probability that...

For each of the following scenarios, decide if the outcome is random. a) You enter a contest in which the winning ticket is selected from a large drum of entries. Was the winner of the contest...