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:

NEPA

The National Environmental Policy Act, a U.S. law that mandates federal agencies to assess the environmental effects of their proposed actions prior to making decisions.

Environment

encompasses all external factors influencing an organism or community, including natural, social, and built contexts.

Federal Agencies

Organizations established by the federal government to implement specific legislation and oversee a particular area of interest or concern.

Nonattainment Area

A geographical area that does not meet federally established ambient air quality standards.