USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm.

-Refer to Exhibit 9.15. Calculate the adjusted operating profits before taxes.
A) $586.5
B) $225.64
C) $825.23
D) $831.56
E) $692.5

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm.
 
-Refer to Exhibit 9.15. Calculate the adjusted operating profits before taxes.
A) $586.5 
B) $225.64 
C) $825.23 
D) $831.56 
E) $692.5

Quizplus · Accepted Answer

Adjusted operating profits before taxes = Operating profits before taxes + Depreciation and amortization - Impairment loss= $500 + $86.5 - $0= $586.5