Exhibit 14 -Refer to Exhibit 14

question 54

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 firm's EVA.

• A) 85.2
• B) 72.3
• C) 65.8
• D) 89.5
• E) 78.2

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Definitions:

Binding Contracts

Agreements that are legally enforceable, requiring all parties involved to fulfill their obligations as stated.

Legally

Pertaining to the law or the practices and procedures prescribed by law.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease and hypertension.

Moderate Exercise

Physical activity that is not too strenuous but is enough to increase heart rate and improve fitness, often recommended for general health benefits.