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.

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.