What is b&s eva for 1987

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Briggs ans Stratton(B&S)

1. What is B&S's EVA for 1987,'88 & '89? Assume a 34% tax rate.

2. Do you agree that he EVA and NPV are equivalent for discounted cash flow analysis? If so then why should B&S mgmt look any further than a conventional EVA analysis?

3. How would you structure an incentive plan for mgmt based on EVA? Why would you not just give mgmt shares in the company or call options (stock options)?

4. What strategic plan would you advise Fred Stratton to use Would EVA be part of the plan - why or why not?

Reference no: EM132467386

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