Exhibit 14 -Refer to Exhibit 14

question 80

Multiple Choice

Exhibit 14.6
Use the Information Below for the Following Problem(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm.
$\begin{array}{c}\begin{array}{lll}\text{LIFO reserve}\\\text{Net plant, property, and equipment}\\ \text{Other assets}\\\text{Goodwill}\\\text{Accumulated Goodwill amortized}\\\text{PV of Operating leases}\\\text{Tax benefit from interest on expenses}\\\text{Tax benefit from interest on leases}\\\text{Taxes on non-operating income}\\\text{Implied interest on op. lease}\\\text{Increase in LIFO reserve}\\\text{Goodwill amortization}\\\text{Operating profit}\\\text{Income tax expense}\\\text{Net working capital}\\\text{WACC}\\\end{array}\begin{array}{lll}&&\end{array}\begin{array}{lll}60\\1325 \\325 \\325 \\65 \\140\\10\\5\\2\\9.5\\12\\15\\550\\215\\440\\0.12\\\end{array}\end{array}$
-Refer to Exhibit 14.6.Calculate the dollar cost of capital.

• A) 286.2
• B) 207
• C) 234.36
• D) 238.44
• E) 302.9

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Definitions:

Training Budget

The allocation of funds dedicated to develop and improve the skills and knowledge of employees through various training programs.

Employee Involvement Group

A team or committee within a workplace that focuses on involving employees in decision-making and improvement processes.

Brainstorm

A creative group problem-solving technique designed to generate a broad range of ideas or solutions to a given challenge.

Workflow Ideas

Concepts and strategies aimed at enhancing the flow of work processes and improving efficiency within an organization.