Q. Part 1

In 2011 Company XYZ had sales of 345,620million, net working profit subsequent to taxes of 10,250 million, and employed $62,650 million in debt and equity capital. Company XYZ cost of capital was 6.5%. What was XYZ EVA in 2011?

Part 2

Company XYZ has the following demand function
P= 100 - 0.0002Q
Its marginal revenue function was
MR = 100 - 0.004Q
a. Find the firm's Total Revenue Function
b. Calculate the output level and price that maximizes total revenue.
c. Calculate the amount of revenues in dollars.

Part 3

Company XYZ expected after tax profits are represented in the following table at an expected discount rate of 10%. Calculate the expected value of the firm XYZ
YEAR EXPECTED PROFTIS AFTER TAX
IN THOUSANDS OF DOLLARS
2008 150
2009 180
2010 200
2011 230