2010-02-24_021739_Determine_the_missing_data

# 2010-02-24_021739_Determine_the_missing_data - Net income =...

This preview shows pages 1–2. Sign up to view the full content.

Determine the missing data.  Calculate the EVA for the following data. Assume the cost of capital is 12 percent (0.12), capital  invested is 1810, and the tax rate is 40% (0.40). All data is millions of dollars.  Net Sales  \$3000  Operating Expenses  2616.2  Depreciation  100  EBIT  283.8  Interest Expense  ?  EBT  Taxes  78.3  Net Income  ? Tax rate = 40% and taxes = \$78.3, then EBT = EBT = 78.3 x 100 40          = \$195.75 Interest expenses = EBIT – EBT      = 283.8 – 195.75      = 88.05

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Net income = EBT – Taxes = 195.75 – 78.3 = \$117.45 Income Statement Particulars Amount Net Sales \$3000 Operating Expenses 2616.2 Depreciation 100 EBIT 283.8 Interest Expense 88.05 EBT 195.75 Taxes 78.3 Net Income 117.45 EVA = NOPAT – WACC x Invested capital NOPAT = Net operating profit after tax = EBIT (1 – tax rate) = 283.8 (1 – 0.40) = 170.28 EVA = 170.28 – 12% x 1810 = 170.28 – 217.20 = - 46.92...
View Full Document

## This note was uploaded on 06/20/2011 for the course ACCT 101 taught by Professor Joannes during the Spring '11 term at Aarhus Universitet.

### Page1 / 2

2010-02-24_021739_Determine_the_missing_data - Net income =...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online