The following information is available for Pohler Company:
Current assets $100,000 Current liabilities $75,000
Property, plant and Long-term liabilities 100,000
equipment 50,000 Stockholders' equity 125,000
Other assets 150,000 Total liabilities and
Total assets $300,000 stockholders' equity $300,000
Invested capital is defined as total assets. Before-tax operating profit is $175,000. After-tax operating profit is $125,000. The after-tax cost of capital is 10%. What is economic profit?
A) $95,000
B) $125,000
C) $145,000
D) $175,000
A
You might also like to view...
Your emergency fund should always be invested in illiquid assets
Indicate whether this statement is true or false.
________ are computers consisting of a circuit board with processors, memory, and network connections that are stored in racks
A) Mainframes B) Rack servers C) Cloud servers D) Hybrid servers E) Blade servers