Problem Walk-ThroughFor 2021, Gourmet Kitchen Products reported $22 million of sales and $18 million of operatingcosts (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 25%. What was thefirm's economic value added (EVA), that is, how much value did management add tostockholders' wealth during 2021? Write out your answer completely. For example, 25 million.should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.$eBook

Economic value added (EVA) is a financial performance measure that reflects the return generated by…

Answered: For 2021, Gourmet Kitchen Products…

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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Use the information below to build a properly formatted income statement. A: The firm has 25,280,000 shares outstanding and its earnings per share is $2.40. Calculate Net Income. B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's operating income is 1.80 times its Net Income. Determine the firm's EBIT. E: Given your answer to D, calculate the firm's Interest Expense. F: After completing the above: Gross Profit is 18.00 times its Interest Expense. Calculate Gross Profit. G: Finally, the firm's Revenue is 1.50 times its EBIT. Calculate the firm's Revenue. INSTRUCTIONS: Write ratios involving dollar amounts out to the penny, with no dollar sign: 1000.00. All ratios and interest rates should be calculated as follows: 11.28 (no percent sign) For this problem: Net Income = Earnings before Taxes = Тах еxpens 3 Earnings before Taxes & Interest = Interest expense = Gross profit = Revenue =
If a company has $610 million in assets and $440 million in liabilities w/ stockholders equity of $170 million, how to find the following: Resources the company has available to work with? How much money does the company owe creditors? How much of the companies assets do the stockholders actually own?
For 2021, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2021?
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Which of the following would affect shareholders' equity? Group of answer choices A company borrows $100 million and buys $100 million in equipment. A company sells $100 million in assets for $100 million cash. A company receives payment for $100 million in accounts receivable. A company pays $100 million to shareholders as a dividend.
. A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5 million, and net income of $8 million. a) What is the firm's net profit margin? b) If net profit increased to 15% from your answer in a), what percentage change does this represent?
Use the information below to build a properly formatted income statement. A: The firm has 12,640,500 shares outstanding and EPS is $3.20.Calculate Net Income . B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's Revenue is $183,600,000 and its operating margin is 45.00%. Calculate EBIT. E: After completing the above: Gross Profit is 1.65 times its EBIT . Calculate Gross Profit . F: Given the above information, calculate the firm's Operating Expenses . G: Given the above information, calculate the firm's Interest Expense .
A company's sales in 2020 were $3.7 million and its total spontaneous assets were $9.7 million. Also in the same year, the firm's spontaneous liabilities consisted of $6.7 million in wages payable, $7.1 million in accounts payable, and $5.9 million in accrued expenses. The firm's profit margin is 5.5% and its dividend payout ratio is 3.1%. The balance sheet at year-end is similar in percentage of sales to that of previous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "k" is used to represent thousands (x $1,000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
Harvey manufacturing company expected in 2021 to have 18% increase in sales compared to 2020 sales of P850,000. The company projects a 15% net profit margin by the end of 2021. Twenty five percent of the net profit margin will be returned to the shareholders in the form of dividends. How much, in total, must be added to the beginning retained earnings? P150,450.00 $153,000.00 P37,612.50 P112,837.50
Bhupat bhai
On 2021, BingBong Inc. net income doubled from the 2020 figure. The number of outstanding shares is constant at 100,000. The pay-out ratio is constant at 30%. If on 2021 the company paid P15 per shareholder, how much is the total net income in 2020?
A company's sales in 2020 were $5.2 million and its total spontaneous assets were $3.2 million. Also in the same year, the firm's spontaneous liabilities consisted of $3.1 million in wages payable. $3.3 million in accounts payable, and $9.5 million in accrued expenses. The firm's profit margin is 6.8% and its dividend payout ratio is 5.5% The balance sheet at year-end is similar in percentage of sales to that of previous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "k" is used to represent thousands (x $1.000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)

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