For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2016? 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.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $9,000 and an annual interest rate of 4 percent when interest is compounded: Use Appendix Afor an approximate answer, but calculate your final
Answers (1)
Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations.
Answers (1)
Consider an investment with the returns over 4 years as shown here: Year. 1 2 3 4 16% 11% 10% 10% a. What is the compound annual growth rate (CAGR) for this investment over the 4 years? b.
Answers (1)
Which of the following is not a factor that could limit the entry of firms into a market? A. Social pressures. B. The fixed costs of building plants. C. A law requiring six months notice to employees before laying them off. D.
Answers (1)
N 2016, marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid. this increased his itemized deductions to a total that was $800 more than the standard deduction.
Answers (1)
New Questions in Business
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days.
Answers (1)
Lesa drives her car approximately 18,000 miles per year. During the most recent year, she drove 7,000 miles commuting to and from work, 4,500 miles for business-related conferences and client visits, and 6,500 miles for personal trips.
Answers (1)
Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate is 6%. Your client chooses to invest 85% of a portfolio in your fund and 15% in a T-bill money market fund. a.
Answers (2)
A firm has zero debt in its capital structure and has an overall cost of capital of 10 percent. The firm is considering a new capital structure with 60 percent debt at an interest rate of 8 percent.
Answers (1)
Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups.
Answers (1)