Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Here are simplified financial statements for Watervan Corporation:
INCOME STATEMENT (Figures in $ millions) Net sales $ 881 Cost of goods sold 741 Depreciation 31 Earnings before interest and taxes (EBIT) $ 109 Interest expense 12 Income before tax $ 97 Taxes 34 Net income $ 63
BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 369 $ 312 Long-term assets 258 222 Total assets $ 627 $ 534 Liabilities and shareholders’ equity Current liabilities $ 194 $ 157 Long-term debt 108 121 Shareholders’ equity 325 256 Total liabilities and shareholders’ equity $ 627 $ 534 The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Economic value added $ million
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Return on capital %
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.) Return on equity %
What annual savings can aqua system expect if the system is implemented?
The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 15.8 percent. The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?
You are considering the purchase of a 20-year, non callable bond with a coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semi annual interest payments. If you require an 12% nominal yield to maturity on this investment, what is ..
The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent..
The currency of your country. Is it stable? Does your country have fixed or floating exchange rates? Does the exchange rate fluctuate a lot? The banking system in your country.
The first payment is due one year after she takes out the loan. Determine Helen’s total annual outlay starting with year 10.
Someone has just offered you the investment of a lifetime.
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. What would be the investme..
What was its liabilities-to-assets ratio, in book and market value? - What was its financial-debt-to-capital ratio, in book value and market value?
Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is ?
Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation.
The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $ 25 million Operating costs (not including depreciation)13 million Depreciation 6 mi..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd