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Scranton Shipyards has $20 million in total investor-supplied operating capital. The company’s WACC is 10 percent. The company has the following income statement: Sales                                         10.0 million Operating costs                       (6.0 million) Operating income (EBIT)         4.0 million Interest expense                      (2.0 million) Earnings before taxes (EBT)    2.0 million Taxes (40%)                             (0.8 million) Net income                              1.2 million What is Scranton’s EVA?

Scranton Shipyards has $20 million in total investor-supplied operating capital. The company’s WACC is 10 percent. The company has the following income statement: Sales                                         10.0 million Operating costs                       (6.0 million) Operating income (EBIT)         4.0 million Interest expense                      (2.0 million) Earnings before taxes (EBT)    2.0 million Taxes (40%)                             (0.8 million) Net income                              1.2 million What is Scranton’s EVA?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Scranton Shipyards has $20 million in total investor-supplied operating capital. The company’s WACC is 10 percent. The
company has the following income statement:

Sales                                         10.0 million
Operating costs                       (6.0 million)
Operating income (EBIT)         4.0 million
Interest expense                      (2.0 million)
Earnings before taxes (EBT)    2.0 million
Taxes (40%)                             (0.8 million)
Net income                              1.2 million

What is Scranton’s EVA?

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