Eeeva Inc. has an EBIT of $1.5 million. The tax rate is 35 percent. Eeeva has a

Question:

Eeeva Inc. has an EBIT of $1.5 million. The tax rate is 35 percent. Eeeva has a debt of $2.5 million and common equity of $5 million. Eeeva's cost of capital is estimated to be 11 percent. Calculate Eeeva's EVA.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...