Company current economic value added

Assignment Help Finance Basics
Reference no: EM131117654

Greshak Corp. had the following data for last year: Net income = $1,175; Interest expense = $210; Total debt = $4,440; Net operating profit after taxes (NOPAT) = $1,365; Total assets = $7,150; and Total operating capital = $6,900. Information for the just-completed year is as follows: Net income = $1,350; Interest expense = $290; Total debt = $8,100; Net operating profit after taxes (NOPAT) = $1,525; Total assets = $8,600; and Total operating capital = $9,050. Assuming Greshak's WACC is 12%, what is the company's current Economic Value Added (EVA)?

Reference no: EM131117654

Questions Cloud

Analyzing the purchase of new equipment : You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire a consulting firm to make recommendations. The consultant charged you $1,500 and recommended the purchase of the latest model from ACM..
Will the sports exports company be favorably or unfavorably : Given Jim's expectations forecast whether the pound will appreciate or depreciate against the dollar over time. Given Jim's expectations, will the Sports Exports Company be favorably or unfavorably affected by the future changes in the value of the p..
What is the future value : What is the future value of $1,400, placed in a savings account for four years if the account pays 8.00%, compounded quarterly? (Your answer should be correct to two decimal places)
What distinguishes a loop control construct : What distinguishes a Loop control construct from a While control construct, in terms of what is known about the number of times the block of code will be repeated?
Company current economic value added : Total operating capital = $9,050. Assuming Greshak's WACC is 12%, what is the company's current Economic Value Added (EVA)?
Putting together a portfolio made up of four different stock : Portfolia Beta and CAPM ) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: Portfolio Weightings Asset Beta First Portfolio Second Portfolio A 2 12% 38% B 0.95 12% 38% C 0...
Retail inventory method presented below is information : Retail Inventory Method Presented below is information related to Waveland Inc. Assuming that Waveland Inc. uses the conventional retail inventory method; compute the cost of its ending inventory at December 31,2011.
Interpret a cash budget for the months : The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

Reviews

Write a Review

Finance Basics Questions & Answers

  What conditions are necessary for an item to qualify as a

what conditions are necessary for an item to qualify as a prior period

  How many shares must the firm issue

If the firm intends to issue new shares to finance the project, how many shares must the firm issue?

  Little books inc recently reported net income of 3 million

little books inc. recently reported net income of 3 million. its operating income ebit was 6 million and the company

  Calculate the cost of the newly issued stock

Roto Roofing Corporation just paid a dividend of $1.85. This dividend is expected to grow at a constant annual ratae of 3 percent each year. Roto Roofing's common stock is currently selling for $12.50.

  Example of profit maximization

Define and give an example of Profit Maximization. How important is this to INFOSYS LIMITED? Thoughts?

  Payment and the principal amount-interest

Michelle and Ken Dunn, both in their mid-20s, have been married for 4 years and have two preschool-age children.  Ken has an accounting degree and is employed as a cost accountant at an annual salary of $62,000.  They're now renting a duplex but w..

  What is an amortization schedule

Would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Why?

  Assume you are to receive a 20-year annuity with annual

assume you are to receive a 20-year annuity with annual payments of 50. the first payment will be received at the end

  If the annualized 5-year rate of return is 10 what is the

if the annualized 5-year rate of return is 10 what is the total 5-year holding rate of

  A medical group includes a provision in its contract with

a medical group includes a provision in its contract with an hmo to receive larger pmpm payments if the hmo members are

  The slopes of some key graph-lines covered in the b2 unit

">Consider the following statement about the slopes of some key graph-lines covered in the B2 unit. I. The slope of an estimated Security Market Line (SML) equals the Equity Premium estimated by the person building the SML graph.

  Bonds of equivalent risk yield

The bonds of Microhard, Inc. carry a 12% annual coupon, have a $1,000 face value, and mature in 4 years. Bonds of equivalent risk yield 10%. Microhard is having cash flow problems and has asked its bondholders to accept the following deal:

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