Malik Company had net (after tax) income last year of $12,375,400 and operating assets of $111,754,000 Malik 's actual cost of capital was 9 percent Required 1 Calculate the EVA for Malik Company 2 2 Is Malik creating or destroying wealth ...

Malik Company had net (after-tax) income last year of $12,375,400 and operating assets of $111,754,000. Malik's actual

Question:

Malik Company had net (after-tax) income last year of $12,375,400 and operating assets of $111,754,000. Malik's actual was 9 percent.
Required:
1. Calculate the EVA for Malik Company. 2
2. Is Malik creating or destroying wealth?
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...