Question: he following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125 current

he following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125

current liabilities $170000

operating income $176200

NBV long term assets (end year 3) $687500

current assets $300000

GROSS BOOK VALUE $1100000

estimated total useful life 8 years

Age of assets 4 years

construction cost index end of year 4 150

of long term assets at historical cost

what is the current cost annual depreciation in year 4 dollars?

1-$440000

2-$240000

3-$165000

4-$295000

5-$200000

question 5

Waldorf Company has two sources of funds: long-term debt with a market and book value of $9 million issued at an interest rate of 10%, and equity capital that has a market value of $6 million (book value of $2 million). The cost of equity capital is 5%, while the tax rate is 30%. What is the EVA for St. johns?

before tax Operating

Income

Assets

Current

Liabilities

ottawa

$ 480000

$ 2000,000

$ 100,000

st johns

$600000

$ 4,000,000

$ 300,000

regina

$1020000

$6000000

$600000

what is EVA for ST. Johns ?

1-$190600

2-$145000

3-$310600

4-$142200

5-$200000

please provide answer for the 2 question with calculations

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