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

question 119

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 capital for the firm.

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

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Definitions:

Deductibles And Copayments

Fixed amounts that policyholders must pay out-of-pocket before an insurer covers the remaining costs for covered services or goods.

Public Insurance

Government-provided insurance intended to offer basic coverage to citizens, often focusing on health, unemployment, or disability.

U.S. Health Care Spending

The total amount of money spent on health care services and products in the United States.

Unemployed

describes individuals who are capable of working and are actively seeking employment but are unable to find a job.