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

  Calculate the NPV of this investment opportunity

FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the costs are $296,638 per year. Once in production, the bike is expected to make $202,100 per year for 10 years. Calculate the NPV of this..

  View point of both the firm and it''s bondholders

A sinking fund can be set up in one of two ways. What are the advantages and disadvantage of each procedure from the view point of both the firm and it's bondholders?

  Money market account which will pay an annual stated

You plan to invest $3343 in a money market account which will pay an annual stated (simple) interest rate of 7.27 percent, but which compounds interest on a weekly basis. If you leave this money on deposit for 10 years, what will be your ending balan..

  What is the treynor ratio

A portfolio has an average return of 9.7 percent, a standard deviation of 8.6 percent, and a beta of .72. The risk-free rate is 2.1 percent. What is the Treynor ratio?

  Determine the simple interest rate for loan

Second Law Venture Capital loaned Thane Magnomotor Corp $26,750,000 for 11 months. The maturity value of the note was $30,000,000.  Determine the simple interest rate for this loan.

  Project evaluation

Your firm is contemplating the purchase of a new $625,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $69,000 at the end of that time. what is the IRR for this proj..

  Immediate-retirement annuity

An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with $7,200 at the end of each year for the next 35 years. You currently earn 4% on low-risk investments comparable to the..

  Balanced scorecard dear sir madamkindly attached find the

dear sir madam ltbrgt ltbrgtkindly attached find the assignment that i need 100 plagiarism free please let me know

  Procedures established to prevent or detect errors or fraud

Internal control consists of the policies and procedures established to prevent or detect errors or fraud. The internal control structure is the cornerstone to good financial practices. Review the Management Antifraud Programs and Controls (14-step p..

  Issuance of the bonds by comenius corporation

On August 1, 2016 Comenius Corporation issued $10 million of 8% bonds at a price of 105. The bonds mature in 20 years. Each bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Co..

  Using economic order quantity model

Cheesburger and Taco Company purchases 14,519 boxes of cheese each year. It costs $26 to place and ship each order and $7.89 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. How many o..

  What is the projects net present value

East Coast Television is considering a project with an initial outlay of $X. It is expected that the project will produce a positive cash flow of $58,000 a year at the end of each year for the next 13 years. The appropriate discount rate for this pro..

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