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A firm s cost of capital is 1 0 % . The firm s book equity is $ 1 2 0 million, and its 1

A firms cost of capital is 10%. The firms book equity is $120 million, and its 10 million shares (common-only) are selling at $20/share. Net income was $19.75 million this year, with a tax rate of 50% and $500,000 paid in interest. Total assets equal $240 million on the books. Current liabilities are $50 million on the books.
Calculate the economic value-added for the firm. Leave out the $ in your answer ($X million would be answered as X000000)

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