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1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY

1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sir please help me sir
Question on ROI DATA 97,000 4000 Revenue Unearned Revenue 5000 BI El Purchases Core Current Assets Land for speculation PPE Operating assets for previous year Operating expenses Accrued expense 2500 38000 58,000 75000 260,000 185,000 24000 8000 TAX RATE 25% DEBT USED 35% INTEREST EXPENSES 14000 DEBT 86000 REAL RATE 4% INFLATION 6% RISK PREMIUM 3.5% RISK FREE RATE 10% Training cost R & D expenses $34,000 $50,000 REQUIRED 1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY 4. CALCULATE RESIDUAL INCOME 5. CALCULATE EVA [ economic value added]
Transcribed Image Text:Question on ROI DATA 97,000 4000 Revenue Unearned Revenue 5000 BI El Purchases Core Current Assets Land for speculation PPE Operating assets for previous year Operating expenses Accrued expense 2500 38000 58,000 75000 260,000 185,000 24000 8000 TAX RATE 25% DEBT USED 35% INTEREST EXPENSES 14000 DEBT 86000 REAL RATE 4% INFLATION 6% RISK PREMIUM 3.5% RISK FREE RATE 10% Training cost R & D expenses $34,000 $50,000 REQUIRED 1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY 4. CALCULATE RESIDUAL INCOME 5. CALCULATE EVA [ economic value added]
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