User Account

All Pages

What is the eva for st augustine

Assignment Help Cost Accounting
Reference no: EM132793015

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 liabilities
St. Augustine         $480000                        $2000000              $100000
Austin                  $600000                         $4000000                    $300000
New Orleans              $1020000               $6000000                       $600000

Problem1 : What is the EVA for St. Augustine?

A.$127,870
B.$163,730
C.$196,270
D.$360,000

Reference no: EM132793015

Questions Cloud

What made socrates the wisest of all in his day : What made Socrates the wisest of all in his day? in Apology by Plato
Question-apology by plato : a) Recount the story of how Socrates got his mission. b) What was Socrates' two fold mission?
How much would the bond sell for consol : A consol is selling at $1,200 with an interest rate of 5%. How much would this bond sell for if the interest rate were 8% instead?
What are the estimated annual operating cash flows : In addition, the company currently has outstanding bonds that have a yield to maturity of 6.49%. What are the estimated annual operating cash flows
What is the eva for st augustine : What is the EVA for St. Augustine? Kernel Industries has two sources of funds: long-term debt with a market and book value of $5 million
What are the controversies or questions on freud ideas : 1. By looking for the other sources and literatures, what are the controversies or questions on Freud's ideas?
What are demographics of methamphetamine usage : What are the long-term effects of methamphetamine use on one's health? Explain. What are the demographics of methamphetamine usage? Why?
What would be simon new wacc and total value : The Simon Company (SIMON) currently has $300,000 market value, If this plan were carried out, what would be SIMON's new WACC and total value
Determine the depreciation for each of the first two years : A computer system acquired on January 1 at a cost of $72,000. Determine the depreciation for each of the first two years by the double-declining-balance method.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Evaluate the average cost per unit for every plant

Evaluate the average cost per unit for every plant and why would manager of plant A be unhappy with using average cost as the performance measure?

  What would be recorded as loss on the transfer of receivable

Sun Inc. factors $6,000,000 of its accounts receivables with recourse. What would be recorded as a gain (loss) on the transfer of receivables?

  Define some of the challenges that china faces

Cultural Revolution highlights some of the challenges that China faces as it moves towards the adoption of International Accounting Standards. These challenges include, but are not restricted to, societal, cultural and accounting issues.

  Compute the total manufacturing cost of job

Compute the total manufacturing. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

  Mile high inc was formed in march 2011 to provide

mile high inc. was formed in march 2011 to provide prepackaged snack boxes for a new low cost regional airline

  Companies predetermined overhead application rate

Calculate the companies predetermined overhead application rate and calculate the additions to the work-in-process inventory account for the direct material used, direct labor and manufacturing overhead.

  Which bank overdrafts held at a different bank

On the balance sheet, bank overdrafts held at a different bank from the company's main chequing account should? be reported as restricted cash.

  Prepare a schedule showing the intangibles section

Prepare a schedule showing the intangibles section of Clinton's balance sheet at December 31, 2008. Show supporting computations in good form.

  Find the expected total pound profit for next year

Find the expected total pound profit for next year. (use the degree of operating leverage to compute your answer.) (Do not round intermediate calculations.)

  How much materials cost must be charged to the job for april

On April 19, 200 units of the April 18 delivery were returned to the supplier. How much materials cost must be charged to the jobs for April?

  Managerial accounting vs financial accounting

Managerial accounting vs financial accounting - statement relates to managerial accounting (MA) or financial accounting (FA):

  Set up the required t accounts

Set up the required T accounts below and show how this transaction would be recorded directly to those accounts

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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