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vova2212 [387]
3 years ago
7

For 2018, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). Th

e company has $15 million of total invested capital. Its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. What was the firm’s economic value added (EVA), that is, how much value did management add to stockholders’ wealth during 2018?
Business
1 answer:
IRINA_888 [86]3 years ago
7 0

Answer:

The firm’s economic value added (EVA), that is, how much value did management add to stockholders’ wealth during 2018 is $0.42 million

Explanation:

Net operating profit = (22 million - 19 million)*(1 - 0.36)

                                 = $1.92  million

EVA = net operating profit after taxes - invested capital*WACC

        = 1.92 million - 15 million*0.10

        = $0.42 million

Therefore, The firm’s economic value added (EVA), that is, how much value did management add to stockholders’ wealth during 2018 is $0.42 million

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2 years ago
Interruptions such as answering the telephone and checking e-mails fall under which of the following quadrants in the time manag
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Answer: Quadrant 3

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This segment involves the tasks one has placed the highest priority on. The jobs involved here are the ones that cannot be postponed and must be immediately attended to. Examples of items here include a medical emergency, fast-approaching deadline for a job and a family crisis.

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