p3-7 What is the amount of the economic value added (EVA)? *The following information is available for Thalia Enterprises for 2018:Operating profitDepreciation expenseChange in net working capitalCapital expendituresTotal assetsP60,000,00015,000,00010,000,00012,000,000120,000,00020,000,00040,000,00010%Current liabilitiesLong term liabilitiesWeighted-average cost of capitalIncome tax rate40%20,000,000O 15,000,000O 36,000,000O 26,000,000

Solution Concept EVA means economic value added It means the value that is added over and above the…

What is the amount of the economic value added (EVA)? * The following information is available for Thalia Enterprises for 2018: Operating profit Depreciation expense Change in net working capital Capital expenditures P60,000,000 15,000,000 10,000,000 12,000,000 120,000,000 20,000,000 40,000,000 Total assets Current liabilities Long term liabilities Weighted-average cost of capital Income tax rate 10% 40%

What is the amount of the economic value added (EVA)? * The following information is available for Thalia Enterprises for 2018: Operating profit Depreciation expense Change in net working capital Capital expenditures P60,000,000 15,000,000 10,000,000 12,000,000 120,000,000 20,000,000 40,000,000 Total assets Current liabilities Long term liabilities Weighted-average cost of capital Income tax rate 10% 40%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

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