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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
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
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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: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
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
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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