Question
A 100 percent equity financed company reported $80 million EBIT in 2013. The cost of equity is 15 percent. The company has 12 million shares
A 100 percent equity financed company reported $80 million EBIT in 2013. The cost of equity is 15 percent. The company has 12 million shares outstanding . Each share has a market value of $24. What is the economic value added (EVA) in 2013 if the marginal tax rate is 35 percent?
A) $56 million
B) 8.8 million
C) $36.8 million
D) -$12.8 million
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Affordable Housing Finance
Authors: K. Hawtrey
2009th Edition
0230555187, 978-0230555181
