Company current economic value added

Assignment Help Finance Basics
Reference no: EM131117654

Greshak Corp. had the following data for last year: Net income = $1,175; Interest expense = $210; Total debt = $4,440; Net operating profit after taxes (NOPAT) = $1,365; Total assets = $7,150; and Total operating capital = $6,900. Information for the just-completed year is as follows: Net income = $1,350; Interest expense = $290; Total debt = $8,100; Net operating profit after taxes (NOPAT) = $1,525; Total assets = $8,600; and Total operating capital = $9,050. Assuming Greshak's WACC is 12%, what is the company's current Economic Value Added (EVA)?

Reference no: EM131117654

Questions Cloud

Analyzing the purchase of new equipment : You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire a consulting firm to make recommendations. The consultant charged you $1,500 and recommended the purchase of the latest model from ACM..
Will the sports exports company be favorably or unfavorably : Given Jim's expectations forecast whether the pound will appreciate or depreciate against the dollar over time. Given Jim's expectations, will the Sports Exports Company be favorably or unfavorably affected by the future changes in the value of the p..
What is the future value : What is the future value of $1,400, placed in a savings account for four years if the account pays 8.00%, compounded quarterly? (Your answer should be correct to two decimal places)
What distinguishes a loop control construct : What distinguishes a Loop control construct from a While control construct, in terms of what is known about the number of times the block of code will be repeated?
Company current economic value added : Total operating capital = $9,050. Assuming Greshak's WACC is 12%, what is the company's current Economic Value Added (EVA)?
Putting together a portfolio made up of four different stock : Portfolia Beta and CAPM ) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: Portfolio Weightings Asset Beta First Portfolio Second Portfolio A 2 12% 38% B 0.95 12% 38% C 0...
Retail inventory method presented below is information : Retail Inventory Method Presented below is information related to Waveland Inc. Assuming that Waveland Inc. uses the conventional retail inventory method; compute the cost of its ending inventory at December 31,2011.
Interpret a cash budget for the months : The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

Reviews

Write a Review

Finance Basics Questions & Answers

  What were the bank discount and the proceeds

Souza & Sons accepted a 9%, $22,000, 120-day note from one of its customers on july 22. On October 2, the company discounted the note at Cooperative Bank. The discount rate was 12%. What were (a) the bank discount and (b) the proceeds?

  Depreciation applicable to this project would be 20000 per

the capital budgeting director is evaluating a project that costs 200000 is expected to last for 10 years and to

  What was the purpose motivating regulators to impose

what was the purpose motivating regulators to impose interest ceilings on bank savings accounts? what effect did this

  Zurich company recently received the following information

zurich company recently received the following information related to the companys december 31 2012 statement of

  Write an apa style paper outlining the effects of financial

write an apa style paper outlining the effects of financial planning governance and ethical issues in modern economies.

  The group of companies we choose googlenbspdetails of

the group of companies we choose googlenbspdetails of assignment you are required to form a team group of 3 to 4 m

  What will be the company return on equity

Under these conditions, the tax rate will be 30%. If the changes are made, what will be the company's return on equity? Round your answer to two decimal places.

  Dividend based problems

Stock X has a required return of 12%, a dividend yield of 5%, and its dividend will incease at a constant rate forever. Stock Y has a required return of 10%, a dividend yield of 3%,

  What is the bonds current yield

A bond that matures in 7 years sells for $1020. The bond has a face value of $1000 and a yield to maturity of 10.5883%. The bond coupn pays coupons semiannually. What is the bonds current yield?

  Find break-even quantity for the manual process

Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experien..

  Difference between the two present value estimates

How significant was TV in creating the difference between the two present value estimates? As a general matter in valuation work, how much attention should terminal value garner? What short list of questions about TV could you keep on hand in case ..

  Assume that you will receive 200000 a year in year 1

assume that you will receive 2000.00 a year in year 1 through 5 3000.00 a year in years 6 through 8 and 4000.00 in year

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd