Layla Corporation has a required rate of return of 15% The weighted average of cost of capital
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Layla Corporation has a required rate of return of 15% The weighted average of cost of capital is 10%. Information for Layla Corporation operations over the past 2 years follows.
2015 2014
Current assets 120,000 100,000
Property, plant & equipment (cost) 300,000 280,000
Accumulated depreciation 80,000 60,000
Current liabilities 90,000 70,000
Long term debt 85,000 80,000
Pretax operating income 52,800 48,900
Income tax rate 30% 30%
What was the Layla Corporation residual income for 2015?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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