Genie Company has operating income after taxes of P50,000. It has P200,000 of equity capital, which has an after-tax weighted-average cost of 12%. Genie also has P10,000 of current liabilities (noninterest-bearing) and no long-term liabilities. What is the company's economic value added (EVA) for the period?

Q: Black River Adventures has net income of $3,518, interest expense of $1,715, sales of $24, 450, and…

A: The net income is the result of the income statement.The income statement is an essential part of…

Q: A company has a total return on capital before tax of 10%. The interest rate on debt is 4% and the…

A: The company first of debt which is said to be the weighted average cost of capital which consist of…

Q: XYZ Corp. had the following data for 2012, in millions: Net income = $500; EBIT = $700; Depreciation…

A: FCFF refers to Free cash flow fund also known as unlevered cash flow, which includes non cash…

Q: Sonova corporation has an operating income of $240000 and a 40% tax rate The firm has short term…

A: The operating profit (EBIT) is $240,000.The tax rate is 40%.The short term is $115,000 and long-term…

Q: yron Brock’s inc recently reported $13 million of net income. It’s EBIT was $20375000, and it’s tax…

A: Income statement shows the revenues and expenses of a company for a given period. The statement…

Q: eBook Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its…

A: To find firm's EVA the calculation is given below

Q: For 2019, Gourmet Kitchen Products reported $21 million of sales and $17 million of operating costs…

A: Economic Value added - is one of the measures of economic profit. It is a type of value being…

Q: Using WACC, ignoring taxes, compute the cost of capital of a company with debt ratio of 0.75:1 and…

A: Debt ratio = 0.75 Equity ratio = 1-0.75 = 0.25 Debt cost = 4% Equity cost = 5%

Q: A company produced (after-tax) profits $1 billion. If this represents an ROE of 4%: A. its book…

A: Given: After tax profits = $1 billion ROE = 4%

Q: Idak Corp. has a pretax income of 21,000 and a 5% weighted-average cost of capital. Assets total…

A: Solution Economic value added = NOPAT - (WACC * capital invested)   Here NOPAT = Net operating…

Q: A firm has net income of $500,000 and sales of $18,000,000. Its interest expense is $180,000 and the…

A: Net Income = ni = $500,000Sales = s = $18,000,000Interest Expenses = i = 180,000Tax rate = t = 30%

Q: For 2021, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including…

A: The objective of the question is to calculate the Economic Value Added (EVA) for Bargain Basement…

Q: What effect would a$9.85 million operating expense have on this​ year's earnings? What effect would…

A: Information Provided: Tax rate = 25% Operating expense = $9.85 million

Q: Lawn.com is expected to have operating losses of $329,300 in its first year of business and $293,400…

A: Present value:Present value is popularly known in short as PV. It is a concept of accounting that…

Q: Riccarton Plc has a profit of £250,000 after interest payments of £50,000 and a tax payment of…

A: ROCE is calculated as ratio of EBIT and total capital employed

Q: Pharrell, Inc., has sales of $998,000, costs of $283,000, depreciation expense of $84,000, interest…

A: net income formula: net income = sales - cost - depreciation - interest ×1-tax

Q: Acer Systems, a manufacturer of gaming consoles, has $5,520,000 in assets. Temporary current assets…

A: Earnings after taxesIt is the amount that remains after a company has paid off all of its operating…

Q: A company which started its operation in the year 8. The pannel set the MARR at 10% after-tax. CCA…

A: Depreciation is a decrease in the book value of fixed assets. Depreciation involves loss of value of…

Q: Nataro, Incorporated, has sales of $674,000, costs of $336,000, depreciation expense of $80,000,…

A: Net income is an economic measure that refers to a company's earnings after all expenses, costs and…

Q: ble income is $10 million, the tax liability is $3 million, and dividends paid are $2 million, what…

A: Retained earning are net income that is retained by the company after payment of dividends and is…

Q: PT. Sentosa Raya uses its own capital and debt capital. The agreed cost of debt is 10% and the…

A: Value of company = Value of debt + Value of Equity  Cost of capital = Ke × We + Kd × Wd Ke = Cost of…

Q: Black River Adventures has net income of $3,518, interest expense of $1,715, sales of $24, 450, and…

A: The net income is the result of the income statement.The income statement is an essential part of…