Exhibit 9-6
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT

question 86

Multiple Choice

Exhibit 9-6
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm. $\begin{array}{llcc} \text {LIFO reserve } & 60 \\ \text { Net plant, property, and equipment } & 1325 \\ \text { Other assets } &30 \\ \text {Goodwill } &325 \\ \text { Accumulated Goodwill amortized } & 65\\ \text { PV of Operating leases } & 140 \\ \text { Tax benefit from interest on expenses } & 10\\ \text {Tax benefit from interest on leases } &5 \\ \text { Taxes on non-operating income } &2 \\ \text {Implied interest on op. lease } & 9.5 \\ \text { Increase in LIFO reserve } & 12 \\ \text { Goodwill amortization } & 15 \\ \text { Operating profit } & 550\\ \text { Income tax expense } & 215 \\ \text { Net working capital } & 440 \\ \text { WACC } & 0.12\\\end{array}$

-Refer to Exhibit 9-6. 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:

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, impacting day-to-day living.

Maladaptive Behavior

Actions or tendencies that are not conducive to health or well-being, often hindering a person's ability to adjust healthily to situations.

Personal Distress

Emotional pain and suffering typically stemming from personal difficulties, challenges, or traumatic events, affecting one's mental health.

Medical Model

The Medical Model is a theory of health which treats mental and physical conditions as medical diseases to be diagnosed, treated, and cured by medical means.