Question

For 2019, Gourmet Kitchen Products reported $23.5 million of sales and $18 million of operating costs...

For 2019, Gourmet Kitchen Products reported $23.5 million of sales and $18 million of operating costs (including depreciation). The company has $14 million of total invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2019? 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.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For 2018, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation)....
For 2018, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017? please show work
HHH Inc. reported $12,500 of sales and $7,025 of operating costs (including depreciation). The company had...
HHH Inc. reported $12,500 of sales and $7,025 of operating costs (including depreciation). The company had $18,750 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 9.5%, and the federal-plus-state income tax rate was 25%. What was HHH's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year? a. $2,441.25 b. $2,208.75 c. $2,563.31 d. $2,098.31 e. $2,325.00 Last year Swensen Corp. had sales of $303,225,...
HHH Inc. reported $32,000 of sales and $8,700 of operating costs (including depreciation). The company had...
HHH Inc. reported $32,000 of sales and $8,700 of operating costs (including depreciation). The company had $16,000 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 12.5%, and the federal-plus-state income tax rate was 40%. What was HHH's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year?             a.         $14,256 b.         $13,100 c.         $12,005 d.         $11,980 Arshadi Corp.'s sales last year were $52,000, and its...
Patterson Brothers recently reported an EBITDA of $16.5 million and net income of $6.6 million. It...
Patterson Brothers recently reported an EBITDA of $16.5 million and net income of $6.6 million. It had $1.5 million of interest expense, and its corporate tax rate was 25%. What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest dollar, if necessary.
Patterson Brothers recently reported an EBITDA of $19.5 million and net income of $7.8 million. It...
Patterson Brothers recently reported an EBITDA of $19.5 million and net income of $7.8 million. It had $1.5 million of interest expense, and its corporate tax rate was 25%. What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest dollar, if necessary
Byron Books Inc. recently reported $18 million of net income. Its EBIT was $34.5 million, and...
Byron Books Inc. recently reported $18 million of net income. Its EBIT was $34.5 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write...
Patterson Brothers recently reported an EBITDA of $10.5 million and net income of $1.8 million. It...
Patterson Brothers recently reported an EBITDA of $10.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest dollar, if necessary.
Patterson Brothers recently reported an EBITDA of $15.5 million and net income of $3.9 million. It...
Patterson Brothers recently reported an EBITDA of $15.5 million and net income of $3.9 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? 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. Do not round intermediate calculations.
Patterson Brothers recently reported an EBITDA of $17.5 million and net income of $2.8 million. It...
Patterson Brothers recently reported an EBITDA of $17.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization? 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. Do not round intermediate calculations.
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT