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17 For 2021, Bargain Basement Stores reported $12,000 of sales and $5,000 of operating costs (including depreciation). The company has $24,000 of total invested capital,

17

For 2021, Bargain Basement Stores reported $12,000 of sales and $5,000 of operating costs (including depreciation). The company has $24,000 of total invested capital, the weighted average cost of that capital (the WACC) was 14%, and the federal-plus-state income tax rate was 25%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2021?

a. $8,610.00

b. $4,410.00

c. $3,640.00

d. $2,730.00

e. $1,890.00

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