EVA = NOPAT – (WACC * capital invested)
NOPAT = Operating Income + Interest * (1 - tax rate )
= 600000 + 200000*(1-0.40)
= 600000 + 120000
= 720000
EVA = 720000 - ( Capital Invested * WACC)
= 720000 - (9000000*10%)
= 720000 - 900000 i.e -180000
28. Casey Motors recently reported the following information Net income $600,000. " Tax rate = 40%....
Casey Motors recently reported the following information: ∙ Net income = $875,000. ∙ Tax rate = 40%. ∙ Interest expense = $200,000. ∙ Total invested capital employed = $9 million. ∙ After-tax cost of capital = 10%. What is the company’s EVA?
Casey Motors recently reported net income of $118 million. The firm's tax rate was 40 percent, and interest expense was $40 million. The company's after-tax cost of capital is 13 percent, and the firm's total investor supplied operating capital employed equals $826 million. What is the company's EVA? (Answers are in $ millions.) $196.67 $118.00 $34.62 $142.00 $107.38
17. Casey Motors recently reported the following information: • Net income - $600,000. • Tax rate=40% • Interest expense - $200,000 • Total investor-supplied operating capital employed 59 million • After-tax cost of capital (or WACC) -10% 1 What is the company's EVA? (Hint: Compute ERT; use that to find EBIT; use thar to find NOPAT, and finally find EVA). a. $200,000 b. SO c. -S180,000 d. -$300,000 Hayes corporation has $300 million of common equity and 6 million shares...
Molteni Motors Inc. recently reported $3.5 million of net income. Its EBIT was $5.75 million, and its tax rate was 30%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3.5 million net income by 1 − T = 0.7 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer...
Molteni Motors Inc. recently reported $3 million of net income. Its EBIT was $7.5 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by 1 − T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Round your answer to the nearest dollar. Enter your...
Molteni Motors Inc. recently reported $2.25 million of net income. Its EBIT was $7 million, and its tax rate was 40%. What was its interest expense? Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
A. Molteni Motors Inc. recently reported $2.25 million of net income. Its EBIT was $5.25 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $2.25 million net income by 1 − T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Round your answer to the nearest dollar. Enter...
Please explain and show work: (2-3) Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, Income Statement and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $6 million net income by 1 T 0 6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this procedure...
Molteni Motors Inc. recently reported $3.5 million of net income. Its EBIT was $5.5 million, and its tax rate was 30%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3.5 million net income by 1 -T-0.7 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer of $1.2 milion...
Barbell Company reported net operating income (NOI) equal to $180,000 this year. Examination of the company's balance sheet and income statement shows that the tax rate was 35 percent, the depreciation expense was $50,000, $140,000 was invested in assets during the year, and invested capital currently is $1,200,000. If Barbell' average after-tax cost of funds is 9 percent, what is the firm's EVA?