Solution-What is Scranton EVA, Scranton Shipyards has $20

What is Scranton EVA

Reference no: EM132875300

Problem - Scranton Shipyards has $20 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement:

Sales $10.0 million

Operating costs 6.0 million

Operating income (EBIT) $4.0 million

Interest expense 2.0 million

Earnings before taxes (EBT) $2.0 million

Taxes (40%) 0.8 million

Net income $1.2 million

Required - What is Scranton's EVA?

Reference no: EM132875300

Questions Cloud

Demanding lax environmental-worker safety standards : If CSR is such a good thing, why is it so difficult to convince some American companies, industries, and interest groups to be more socially responsible by not

Discuss use of Straight-line and Double Declining Balance : Discuss the use of Straight-line and Double Declining Balance depreciation including the impact to the income statement, balance sheet, and ROE

Explain how bias affects a selection system : Please help me answer the following question: Note: answer in a clear, short, simple and concise. Please explain well also.

Describe the nature and purpose of unions : Describe the nature and purpose of unions.

What is Scranton EVA : Scranton Shipyards has $20 million in total invested operating capital, and its WACC is 10%. What is Scranton EVA

Evaluating the performance of the graduate recruits : Suggest one type of performance appraisal system that would be effective in evaluating the performance of the graduate recruits once they move into management p

What is the purpose of benefits management : What is the purpose of benefits management - Workplace identification and documentation of program benefits

What is the carrying value of the debt instruments : The debt instrument is convertible into 50,000 ordinary shares with a par value of P100. What is the carrying value of the debt instruments

Type of compensation and benefits an organization : 1) What type of compensation and benefits an organization could offer to engage, attract, recruit, and retain a diverse and strong workforce.

Reviews

Write a Review

Required(*) Message

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?

Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

Accounting problems

Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.

Theory of interest - term structure of interest rates

Term Structure of Interest Rates

Write a report on internal controls

Write a report on Internal Controls

Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

Liquidity and profitability

Distinguish between liquidity and profitability.

What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

User Account

All Pages

What is Scranton EVA

Reference no: EM132875300

Reference no: EM132875300

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT