Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: $ 12.0 million 6.0 million $ 6.0 million 2.0 million $4.0 million Sales Operating costs Operating income (EBIT) Interest expense Earnings before taxes (EBT) Taxes (25%) 1.0 million Net income $3.0 million. What is Scranton's EVA? Answer options are provided in whole dollar. O a. $2,450,000 O b. $2,050,000 O c. $950,000 O d. $6,550,000 O e. $3,950,000
Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: $ 12.0 million 6.0 million $ 6.0 million 2.0 million $4.0 million Sales Operating costs Operating income (EBIT) Interest expense Earnings before taxes (EBT) Taxes (25%) 1.0 million Net income $3.0 million. What is Scranton's EVA? Answer options are provided in whole dollar. O a. $2,450,000 O b. $2,050,000 O c. $950,000 O d. $6,550,000 O e. $3,950,000
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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I need help solving these two questions.
Transcribed Image Text:Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement:
$ 12.0 million
6.0 million
$ 6.0 million
Interest expense
2.0 million
$4.0 million
Earnings before taxes (EBT)
Taxes (25%)
1.0 million
Net income
$ 3.0 million
What is Scranton's EVA? Answer options are provided in whole dollar.
Sales
Operating costs
Operating income (EBIT)
a. $2,450,000
O b. $2,050,000
c. $950,000
d. $6,550,000
e. $3,950,000
Transcribed Image Text:Your uncle is about to retire, and he wants to buy an annuity that will provide him with $55,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 4.65%. How
much would it cost him to buy the annuity today?
O a. $739,067.05
O b. $715,876.17
c. $761,227.47
O d. $706,227.47
O e. $727,403.22
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