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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In determining whether to issue a loan, banks are not allowed to ask about an applicant's employment history. date of birth. country of origin. income tax returns.
Answers (2)
Jeffries Roofing: In its proposals, Jeffries Roofing describes the materials to be used and the price. When a customer signs a bid, it becomes an enforceable contract. True or false?
Answers (1)
The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory - 0 - Units started in production 20,000 Units finished during the period 16,000 Units in process at the end of the period
Answers (1)
Pumpkin Inc. sold $500 in pumpkins to a customer on account on January 1. On January 11, Pumpkin collected the cash from that customer. What is the impact on Pumpkin's accounting equation from the collection of cash?
Answers (1)
Is it 50 hours in a day?
Answers (2)
New Questions in Business
Which of the following is true? A. Both microeconomics and macroeconomics deal with same economic issues of inflation, unemployment and growth. B.
Answers (1)
Using the adage you get what you measure when designing the performance evaluation system
Answers (1)
Mary's bakery is trying to determine what price to charge for her cookies, so mary places a low price on them and raises it each week, keeping track of how many she sells.
Answers (1)
Suppose the baldwin company begins to compete through good designs, high awareness and easy accessibility for their existing products, what strategy would they be implementing?
Answers (1)
Blue technologies manufactures and sells dvd players. great products company has offered blue technologiesâ $22 per dvd player forâ 10,000 dvd players. blueâ technologies' normal selling price isâ $30 per dvd player.
Answers (1)