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:

Irrational Beliefs

Thoughts or ideas that are unrealistic, illogical, or not based on fact or rational reasoning, often leading to negative emotional outcomes or behaviors.

Contextual Awareness

The understanding of how situational, cultural, and environmental contexts affect individuals' thoughts, behaviors, and emotions.

Consciousness Development

Refers to the process of expanding self-awareness, understanding, and insight, often through practices such as meditation, education, and self-reflection.

Therapeutic Proactivity

An approach in therapy that involves active participation and initiative from the therapist to facilitate healing or positive change.