Scranton Shipyards Has $7

question 116

Multiple Choice

Scranton Shipyards has $7.0 million in total invested operating capital,and its WACC is 10%.Scranton has the following income statement: What is Scranton's EVA? Answer options are provided in whole dollar.

• A) $1,275,000
• B) $2,040,000
• C) $1,700,000
• D) $1,530,000
• E) $1,870,000

---

Definitions:

Investment Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.

GICs

Stands for Guaranteed Investment Certificates, which are Canadian investment instruments that provide a guaranteed rate of return over a fixed period.

Market Efficiency

An idea in financial economics stating that the prices of assets completely incorporate all existing information.

Market Efficiency

A concept in financial economics that states that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.