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mash [69]
3 years ago
14

Casey Motors recently reported net income of $148 million. The firm's tax rate was 40.0% and interest expense was $46 million. T

he company's after-tax cost of capital is 11.0% and the firm's total investor supplied operating capital employed equals $1,036 million. What is the company's EVA? (Answers are in $ millions.)
Business
1 answer:
HACTEHA [7]3 years ago
3 0

Answer:

$61,640,000

Explanation:

Earning before tax:

= Net income ÷ 60%

= $148,000,000 ÷ 60%

= $246,666,667

EBIT:

= Earning before tax + Interest expense

= $246,666,667 + $46,000,000

= $292,666,667

EVA:

= EBIT(1 - t) - (Capital employed × cost of capital)

= $292,666,667(1 - 0.4) - ($1,036,000,000 × 11%)

= $175,600,000 - 113,960,000

= $61,640,000

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SashulF [63]

Answer:

C. the need for dealers to cover expenses and make a profit

Explanation:

In the market for securities there are two pricing of securities.

The ask price is the price at which the buyer is willing to purchase a security.

The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.

Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.

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4 years ago
Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes t
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Answer:

E) Trading company

Explanation:

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3 years ago
When job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. a total of 1,00
Viefleur [7K]
To solve: add up all in the labor costs and then divide by the number of units produced to get the per unit cost of the labor.

<span>Direct materials = $4,400
Direct labor = $5,600
Factory overhead = $2,400
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3 years ago
A store manager must decide how many rug cleaners to rent to customers. The manager estimates that the first would yield $200 a
Harrizon [31]

Answer:

The store manager must decide to buy 3

Explanation:

Given that:

  • The first:  $200 a year
  • The second $150
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As we know that the rate of return will be: Income / Investment

So the rate of return of:

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3 years ago
What is included in a speaking outline that is not included in a working outline?
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