4. a. Find operating capital for Year 0. b. If the after tax cost of...

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Accounting

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4. a. Find operating capital for Year 0. b. If the after tax cost of capital is 9%, calculate the EVA for Year 0. Income Statement Year 0 (s millions) Revenues 800 300 Operating Costs Depreciation 100 Amortization 0 EBIT Interest Expense EBT 220 Taxes (25%) Net Income Dividends Add to RE 120 Balance Sheet Cash $ 100 Receivables 200 Inventories 150 Current Assets 450 Net Fixed Assets 100 Total Assets 550 50 Accounts Payable Notes Payable 10 Accruals 30 Current Liabilities 90 Bonds 110 Common Stock 150 Retained Earnings Total Lab & Eq $

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