Reference no: EM132795559
Kernel Industries has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that has a market value of $4 million (book value of $2 million). Kernel Industries has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 12%, while the tax rate is 25%.
operating income Assets Current liability
St. Augustine $480,000 $2,000000 $100,000
Austin $600,000 $4,000000 $300,000
New Orleans $1,020,000 $6,000000 $600,000
problem 1: What is the EVA for New Orleans?
A.$225,000
B.$765,000
C.$207,180
D.$557,820
|
What is the material price variance at point of purchase
: What is the material price variance at point of purchase? During the year the company acquired direct materials at P8 per unit for a total cost of P15,000.
|
|
What is the firm levered equity cost of capita
: A firm can be worth $100 million, If the firm's projects require an appropriate cost of capital of 10%, then what is the firm's levered equity cost of capital?
|
|
How political thought evolved during the enlightenment era
: How did Enlightenment Era thought influence the Declaration of Independence? In your answer, be sure to address how political thought evolved during.
|
|
Did domestic or international factors play an important role
: Write an analytical essay (12-point font and 4 to 6 double-spaced pages) responding to one of the following questions. Make sure to draw on both primary.
|
|
What is the eva for new orleans
: What is the EVA for New Orleans? Kernel Industries has two sources of funds: long-term debt with a market and book value of $5 million
|
|
Find How big will the annual payments be
: On December 31, Beth Klemkosky bought a yacht for $60,000. She paid $20,000 down and agreed to pay the balance. How big will the annual payments be?
|
|
Discuss the sentiments of phillis wheatley
: Discuss the sentiments of Phillis Wheatley as expressed in her poem "On Being Brought from Africa to America" and that of the spirituals.
|
|
Which journal entries is correct for smith company
: Which journal entries is correct for Smith Company when Smith issues 10,000 shares of $20 par value common stock and pays $20,000 cash in exchange
|
|
What role did the great depression in the united states play
: What effects did the history, politics, and economies of those areas play in their decisions to turn to totalitarianism? What role did the Great Depression.
|