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Scranton Shipyards has $22 million in total net operating capital. The company's WACC is 10 percent. What is Scranton's EVA? If negative, use the negative sign instead of parentheses, e.g. -130,000. 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

Scranton Shipyards has $22 million in total net operating capital. The company's WACC is 10 percent. What is Scranton's EVA? If negative, use the negative sign instead of parentheses, e.g. -130,000. 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

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 $22 million in total net operating capital. The company's WACC is 10 percent. What is Scranton's EVA? If negative, use the negative sign instead of parentheses, e.g. -130,000.

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
 

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