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
Related questions
Question
100%
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Ehrlich & Czarnecki Consulting, Inc. recently reported the following information:
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Net income = $800,000
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Sales = $4,200,000
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Total Assets = $9.5 million
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Tax rate = 40%
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Interest expense = 20,000
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Accounts Payable = 36,000
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Notes Payable = 300,000
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Accruals = 50,000
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After-tax cost of capital = 11%
What is the company’s EVA?
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$-296,358
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$-223,540
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$-452,391
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$-488,029
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None of the above is within $100 of the correct answer.
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