What was the firms economic value added

Assignment Help Financial Management
Reference no: EM131222073

EVA For 2012, Malcom's Supplies reported $3,300,000 of sales and $2,310,000 of operating costs (including depreciation). The company has $4,950,000 of investor-supplied operating capital. Its weighted average cost of capital is 11.30% and its federal-plus-state income tax rate was 33.30%.

What was the firm's Economic Value Added (EVA), that is, how much value did management add to stockholders' wealth during 2012?

Reference no: EM131222073

Questions Cloud

What were dividends paid by the firm : The year-end 1999 balance sheet of Brandex Inc. Lists common stock and other paid-in capital at $1,100,000 and retained earnings at $3,400,000. The next year, retained earnings were listed at $3,700,000. The firm’s net income in 2000 was $900,000. Th..
Features of wds are you likely to use : All Windows 8.1 computers should have three applications installed. What are some ques- tions you need to ask this customer before beginning the deployment, and which features of WDS are you likely to use?
Wages consolidated construction pays to their welders : Consolidated Construction obtained a job working for a nearby international airport, a project contracted with the federal government for $500,000, welding the support structures for the new extension of the terminal. What laws govern the wages Conso..
How to efficiently compute this measure in a data cube : For a data cube with the three dimensions time, location, and item, which category does the function variance belong to? Describe how to compute it if the cube is partitioned into many chunks.
What was the firms economic value added : What was the firm's Economic Value Added (EVA), that is, how much value did management add to stockholders' wealth during 2012?
Determining the shuttle service capacity : Transportation service is considering improving the shuttle service capacity during morning hours from city T to city M. The analyst predicts the demand for this service during morning hours is 500 persons per hour. And the average transportation ..
What is shareholders equity : Construct a balance sheet for Sophie’s Sofas given the following data. What is shareholders’ equity?
Maker of winglow is purchasing new stamping machine : The maker of Winglow is purchasing a new stamping machine. Two options are being considered, Rooney and Blair. The sales forecast for Winglow is 8,750 units for next year.  If variable costs are now $20 per unit, which machine should be purchased? Bl..
Determine whether f is a mnetion from z to r it if : Determine whether f is a Mnetion from Z to R It if. Determine whether each of these function from Z to Z is 1-1 or is an injection. Justify your answer.

Reviews

Write a Review

Financial Management Questions & Answers

  Adding robotic paint sprayer to its production line

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,080,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold af..

  Inventory turnover and inventory conversion period

BestSell Autions carries an average inventory equal to $100,000. The Company's cost of goods sold averages $1.5 million. What are BestSell's (a) inventory turnover, and (b) inventory conversion period?

  Interest deferred period the loan accumulated interest

Bank of Land lends you money today but requires no payments for 3 years. However, during this interest deferred period the loan accumulated interest at 6% rate, compounded quarterly. The bank amortizes the loan over five year period, requiring quarte..

  Assume that there is no maturity risk premium

A 5-year Treasury bond has a 3.05% yield. A 10-year Treasury bond yields 6.05%, and a 10-year corporate bond yields 9.6%. The market expects that inflation will average 3.3% over the next 10 years (IP10 = 3.3%). Assume that there is no maturity risk ..

  Profit method to estimate dollar value of stolen property

Maverick Equipment Rental was burglarized on 2/15/15. It is unclear how many items were stolen. Maverick and its insurance company are currently working to estimate the dollar value of the stolen goods in order to reach a financial settlement under t..

  Scheduled to receive annual payments

You are scheduled to receive annual payments of $10,000 for each of the next 25 years. Your discount rate is 8.5%. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each ..

  Discount rate problem

What is the value today of $4,000 per year, at a discount rate of 10 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today? (Do not round intermediate calculations and round your final answe..

  Find the exercise price of the index put option

You want to hedge against your portfolio value declining more than 10% in 1 year. Currently, the S&P500 is standing at 2,000 and your portfolio has a beta of 1.8. You need to purchase 1-yr S&P500 put options. Find the exercise price of the index put ..

  Calculate the costs of buying versus leasing

Use the following data: Purchase Costs Leasing Costs Down payment: $3,600 Security deposit: $1,200 Loan payment: $1,080 for 48 months Lease payment: $1,080 for 48 months Estimated value at end of loan: $4,700 End-of-lease charges: $705 Opportunity co..

  What is the overall capitalization rate

A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate?

  Commissions at time when the margin requirement

Three hundred shares of stock are purchased on margin at a price of $42 per share plus $150 in brokerage commissions at a time when the margin requirement is 50 percent. How much additional cash would you need to deposit with your broker if the price..

  Market contagion

It is said that global stock markets are intertwined/connected and that market performance in one part of the world could have fundamental impacts or influences on the markets in other parts of the world (contagion). Provide an account of the perform..

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