Avionics Industrials reported at year end that operating inc…

Avionics Industrials reported at year end that operating income before taxes for the year equaled $2,400,000. The firm’s weighted-average cost of capital (WACC) is 7.24%. The carrying amount of debt is $1,300,000, and the carrying amount of equity capital is $8,800,000. The income tax rate for Avionics is 30%. What is the economic value added (EVA)?

To evaluate its performance, the Blankie Co. is comparing it…

To evaluate its performance, the Blankie Co. is comparing its costs of quality from one year to the next. The relevant costs are as follows: First Year Second Year Prevention $45,000 $60,000 Appraisal 25,000 35,000 Internal failure 80,000 50,000 External failure 75,000 65,000 Which of the following conclusions can Blankie draw about its quality program?