Castle Products recently reported the following information: Net income = $680,000. - Sales $8,100,000. Tax rate=40%....
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Castle Products recently reported the following information: Net income = $680,000. - Sales $8,100,000. Tax rate=40%. Interest expense = $400,000. Total investor-supplied operating capital employed = $7.1 million. After-tax cost of capital = 11%. What is the company's EVA? a. $139,000 b. $3,839,000 c. $520,000 EBIT 1533333.33 -I (400,000) EBT 1133333 X (1-T) (1-40) Ni 680,000 d. $297,000 e. $2,142,000 Capiti Accurals)] (WACC) EVA-EBIT (1-T) { toti capil - (A/P-+ Acc 1,533,333 (1-40) Castle Products recently reported the following information: Net income = $680,000. - Sales $8,100,000. Tax rate=40%. Interest expense = $400,000. Total investor-supplied operating capital employed = $7.1 million. After-tax cost of capital = 11%. What is the company's EVA? a. $139,000 b. $3,839,000 c. $520,000 EBIT 1533333.33 -I (400,000) EBT 1133333 X (1-T) (1-40) Ni 680,000 d. $297,000 e. $2,142,000 Capiti Accurals)] (WACC) EVA-EBIT (1-T) { toti capil - (A/P-+ Acc 1,533,333 (1-40)
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