Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) ABC Inc. Reported= $14,500 of sales and= $7,025 of operating costs (including depreciation). Company had= $18,750 of investor-supplied operating capital, weighted average cost of that capital (the WACC) was 11.5%, and federal-plus-state income tax rate was= 34%. Determine the ABC's Economic Value Added (EVA), that is., how much value did management add to stockholders' wealth in the year?

2) Wells Water Systems just reported $9,250 of sales, $4,750 of operating costs other than depreciation, and $900 of depreciation. Company had no amortization charges, it had= $3,250 of outstanding bonds which carry= 6.75% interest rate, and its federal-plus-state income tax rate was 34%. To sustain its operations and therefore generate sales and cash flows in future, firm was needed to spend $750 to buy new fixed assets and to invest= $250 in net operating working capital. How much free cash flow did Wells make?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914987

Have any Question? 


Related Questions in Basic Finance

Assume the sweatshirt test scores are normally distributed

Assume the sweatshirt test scores are normally distributed with a mean of 500 and a standard deviation of 100. (a) Consider all random samples of 100 test scores. What is the standard deviation of the sample means? (b) W ...

1 although economists generally discredit mercantilism can

1. Although economists generally discredit mercantilism, can you find any examples in the popular press where politicians or business leaders use similar arguments to protect an industry? 2. Identify some products initia ...

An article in the new york times claims in a global market

An article in the New York Times claims, "In a global market, the main reason one currency offers a higher interest rate than another is that it is compensating the holder for exchange rate risk." Briefly explain whether ...

Create predictions about the relationships between

Create predictions about the relationships between behavioral variables that interest you. For each relationship that you develop, indicate how the prediction could be tested using a descriptive, a correlational, and/or ...

1 behavioral measures frequently have the advantage of

1. Behavioral measures frequently have the advantage of reducing participant reactivity. Since they can capture the behavior of individuals more honestly, why are they so infrequently used in behavioral research? 2. Cons ...

The performance of a journal bearing around a rotating

The performance of a journal bearing around a rotating shaft is a function of the following variables: Q, the rate of flow lubricating oil to the bearing in volume per unit time; D, the bearing diameter; N, the shaft spe ...

Beta ltd just paid a dividend of 040 and dividends are paid

Beta Ltd just paid a dividend of $0.40 and dividends are paid once a year. Dividends are expected to grow at 4% p.a. for each of the next five years and then to remain constant forever. Assume a required rate of return o ...

Explain how the repurchase agreement plays a role in the

Explain how the repurchase agreement plays a role in the pricing of futures contracts. What is the implied repo rate? Identify and explain some factors that make the execution of stock index futures arbitrage difficult i ...

Ne at least three ways to reduce the possibility of scc

Name at least three ways to reduce the possibility of SCC ? Which is better, a relatively small anode or a large one and why? Is coating a fastener always helpful in fighting corrosion resistance, even if there are minor ...

1 what distinguishes a spot market from a derivatives

1. What distinguishes a spot market from a derivatives market? What distinguishes the money market from the capital market? How does the efficiency of a market affect an investor's strategy? 2. The following is an excerp ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen