Houston pumps recently reported net income of $600000 and an interest expense of $238000. The company has total invested capital employees of $7.2 million a tax rate of 40% and after tax cost of capital of 10%. What is the companies EVA?

Houston pumps recently reported net income of $600000 and an interest expense of $238000. The company has total invested capital employees of $7.2 million a tax rate of 40% and after tax cost of capital of 10%. What is the companies EVA?

Name: Houston pumps recently reported net income of $600000 and an interest
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Description: Houston pumps recently reported net income of $600000 and an interest expense of $238000. The company has total invested capital employees of $7.2 million a tax rate of 40% and after tax cost of capital of 10%. What is the companies EVA?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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