+x Tyler - 3/5/2011 4:53:13 PMForgive me but what is the debt payment?I had assumed this would be the amount you pay to debtors, i.e. interest. This is given as $40M, though, so it seems strange to me that we would be asked to provide it.
Why when calculating EVA is the answer: 101 - .086(1000)
I understand the idea being 101M was added and we are taking off what the return was using WACC. My confusions comes from the 101M number. Shouldnt we only use 75M since that is our net income?
I would agree except NEAS said in this thread http://www.neas-seminars.com/discussions/shwmessage.aspx?ForumID=167&MessageID=10577
that accounting income is net of taxes.
[NEAS: Net income means net of taxes]