What is forecasted eva for 2012

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Calculate what EVA will be in 2012 based on financial forecasts for 2012 and prior year financial data.

Fiscal Forecast 2012

Total Assets = 54,600,000
Noninterest-bearing current liabilities = 20,100,000
Sales = 99,500,000
Net income = 5,600,000
Interest expense = 1,250,000
Research and development = 2,410,000
Tax Rate is 30%
Cost of capital is 13.50%

Research and development expenditures in 2010 and 2011 were 1,200,000 and 2,200,000 respectively. In calculating EVA, prior research and development will be capitalized and amortized assuming a three-year life (i.e., one-third will be expensed in the year occurred, and two-thirds will be capitalized and expensed in the following two years).

What is forecasted EVA for 2012

 

Reference no: EM13298519

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