User Account

All Pages

Management add to stockholders

Assignment Help Finance Basics
Reference no: EM131493510

For 2016, Gourmet Kitchen Products reported $22.5 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 34%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

Reference no: EM131493510

Questions Cloud

Write a critical analysis of the selected test : Write a critical analysis of the selected test, based on the scholarly review and on support from a minimum of five additional, relevant resources
In perfect world capital market : In a "perfect world" capital market, how important is a firm's decision to pay dividends versus repurchase shares?
Valuation of a declining growth stock : Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising.
Explaining the differences between jails and prisons : Explaining the differences between jails and prisons. Then add your opinion as to why you believe that inmates have been granted too many rights.
Management add to stockholders : Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 34%. What was the firm's economic value added (EVA),
Excess profits and resulting cash inflows : If the subsidiary proves to be very successful, what will you do with its "excess profits" and resulting cash inflows?
Pv and loan eligibility : You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $400.
How change to its organizational structure might have impact : Offer one such organization that has not been used as an example so far, and discuss how changes to its organizational structure might have an impact?
Loan amortization and ear : The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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