Please don't provide handwriting solution Calculate economic profit based on the following information: WACC = 7.60%; TotalAssets = $1,366; Net Income = $266; EBIT = $327; Payroll Payable = $20; TotalEquity = $1,395; Rate = 10%; Cash = $66; Accounts Payable = $25; Bank Debt withinterest rate of 7% = $45. (Hint: Accounts Payable and Payroll Tax Payable are theonly non-interest bearing liabilities).O 15.85%O 13.60%O 14.28%O 15.04%O 11.58%O 13.50%O-13.50%O 23.45%O -7.60%O-15.85%O 13.85%

Calculate the interest expense on Bank Debt:Bank Debt = $45Interest rate = 7%Interest expense = Bank…

Answered: alculate economic profit based on the…

alculate economic profit based on the following information sets = $1,366; Net Income = $266; EBIT = $327; Payroll uity 10% Cash- $66: Accounts Payabl - $1 395: Bate 1

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Please don't provide handwriting solution

Calculate economic profit based on the following information: WACC = 7.60%; Total
Assets = $1,366; Net Income = $266; EBIT = $327; Payroll Payable = $20; Total
Equity = $1,395; Rate = 10%; Cash = $66; Accounts Payable = $25; Bank Debt with
interest rate of 7% = $45. (Hint: Accounts Payable and Payroll Tax Payable are the
only non-interest bearing liabilities).
O 15.85%
O 13.60%
O 14.28%
O 15.04%
O 11.58%
O 13.50%
O-13.50%
O 23.45%
O -7.60%
O-15.85%
O 13.85%

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