Exhibit 14 -Refer to Exhibit 14

question 17

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 capital for the firm.

• A) 1725
• B) 1953
• C) 2524
• D) 2385
• E) 1987

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Definitions:

Retribution

A concept in criminal justice whereby punishment is exacted on an offender as a form of justified vengeance for their actions.

Deterrence Theory

A concept in criminology that argues the certainty, severity, and swiftness of punishment can deter individuals from committing crimes.

Pre-Twentieth Century

Referring to the period in history before the year 1900.

Deterrence

The use of punishment or the threat of punishment to discourage individuals from engaging in criminal or undesirable behavior.