Economic value added this year

Assignment Help Financial Management
Reference no: EM131455964

RJS generated $65,000 net income this year. The firm's financial statements also show that its interest expense was $40,000, its marginal tax rate was 35%, and its invested captial was $800,000. If its average cost of funds is 12%, what was RJS's economic value added (EVA) this year?

Reference no: EM131455964

Questions Cloud

What annual contributions to the retirement fund : What annual contributions to the retirement fund will allow you to receive the $31,000 annuity?
Insurance protection equal to twice employees annual salary : An employer provides all of his employees with life insurance protection equal to twice the employee's annual salary. collected on the life insurance policy?
What would be the nominal and effective cost of that credit : Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 55; what would be the nominal and effective cost of that credit?
What is the conversion ratio and conversion value : What is the conversion ratio and What is the conversion value?
Economic value added this year : what was RJS's economic value added (EVA) this year?
Create a breakeven chart : Create a breakeven chart for Jay Company based on unit increments of 250 and the revised fixed costs of $367,800.
Compute the anticipated return for stock : Using the formula for the security market line (Formula 21-7) compute the anticipated return for stock i (Ki).
Basic financial statements in the most recent annual report : Look at the four basic financial statements in the most recent annual report (listed as "10K") for any publicly traded corporation.
Compute the present value of each alternative : Assuming you could earn 6 percent annually, compute the present value of each alternative:

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the NPV of the expansion

You work for a small widget-producing company. You're considering expanding the company's factory in Wichita. The expansion is projected to cost $400,000. It will produce an inflow after operating costs of $100,000 in year 1, $200,000 in year 2, and ..

  Considering buying a dividend paying stock

A broker is considering buying a dividend paying stock. The dividend will be paid at the end of the year. The analyst consensus is the stock will worth $36 in one year. The company pays a $2.25 annual dividend and the broker expects 12% rate of retur..

  What is the return on investment for investors

In 1970, Walmart offered 300,000 shares of its common stock to the public at a price of $16.50 per share. Since that time, walmart has had 11 two for one stock splits. What is the return on investment for investors who purchased the stock in 1970 (ov..

  Initial fixed asset investment

Consider a four-year project with the following information: initial fixed asset investment = $430,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $24; variable costs = $16; fixed costs = $120,000; quantit..

  Evaluate the return on your stock-trak portfolio

Use Sharpe, Treynor, or Jensen’s measures to evaluate the return on your Stock-Trak portfolio. Why did you use that particular measure? Given your returns, what do you plan to do differently with your portfolio next week? How do your returns compare ..

  Beatrice markets is expecting a period of intense growth

Beatrice Markets is expecting a period of intense growth and has decided to retain more of its earnings to help finance that growth. As a result, it is going to reduce its annual dividend by 30 percent a year for the next 2 years. After that, it will..

  Design research in the area of organizational behavior

Design a research in the area of Organizational Behavior, select any topic and determine the research problem,

  According to constant dividend growth model

A share of stock will pay a dividend of $1.4 one year from now, with dividend growth of 5.6 percent thereafter. According to the constant dividend growth model, if the required return is 14.8 percent, what should the value of the stock be 3 years fro..

  What is the risk-free rate of return

The expected return on HiLo stock is 14.65 percent while the expected return on the market is 13.5 percent. The beta of HiLo is 1.21. What is the risk-free rate of return?

  Research the meaning and history of par value

Research the meaning and history of "par value" as it pertains to common stock. Is this term still relevant to stockholders' equity today, or is it merely an anachronism, an unnecessary carryover from the past, much like an old TV antenna we're too l..

  What is project year zero net cash flow

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,010,000 in annual sale..

  What will be companys total dividend payment

Financial Management 534- The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

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