Barnes' Brothers Has the Following Data for the Year Ending

question 12

Multiple Choice

Barnes' Brothers has the following data for the year ending 12/31/07: Net income = $600; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100.Barnes' weighted average cost of capital is 10%.What is its economic value added (EVA) ?

• A)$420.11
• B)$442.23
• C)$465.50
• D)$490.00

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Definitions:

Readiness Assessment

An evaluation designed to determine whether individuals or systems are prepared to move forward with a new project, program, or learning.

Learning Disability

A neurological disorder that affects a person's ability to read, write, spell, or do math, despite having at least average intelligence.

Intellectual Disability

A disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers a range of everyday social and practical skills.

Education For All Handicapped Children Act

A public law passed in 1975 which required that all public schools that receive federal funds provide handicapped children and adults ages 3–21 with an education in the “least restrictive environment.”