Calculate the total capital employed of the company

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Reference no: EM133052743

Question - Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below:

Current liabilities 24500

Notes payable 55600

Bond payable 18500

Equity 280000

Total Assets ?

Current Assets 48,600

Tax rate 20%

Net income 29500

Research and Development $8200

Training expenses for employees $9700

Sales 56200

Interest on debt 7000

Risk free rate 4%

Market return 7%

Beta 1.5

REQUIRED -

1. Calculate interest expense, tax and EBIT.

2. Calculate the total capital employed of the company.

3. Calculate weighted average cost of capital.

4. What is the EVA of the company?

5. Calculate Residual Income.

6. What are the major advantages of using EVA to evaluate performance?

Reference no: EM133052743

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