Bon Temps' financial statements show the following information: Average cost of funds 10.0 %, EBIT $ 500,000, Total capital $1,250,000, EPS $2.00, Shares outstanding 150,000, Marginal tax rate 30.0%.

(1) Compute the company's economic value added (EVA).
(2) Suppose that normally Bon Temps' P/E ratio is 20. Using the information given, estimate the market price per share for Bon Temps' common stock.

%of the world's population controls approximately % of the world's finances (the sum of gross domestic products)" quizlket

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of: