2010-02-24_021739_Determine_the_missing_data

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

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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
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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...
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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.

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

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