Question
ABC Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,192; Total assets =
ABC Company has the following data for the year ending 12/31/2020 (dollars are in thousands):
Net income = $600;
EBIT = $1,192;
Total assets = $3,000;
Short-term investments = $200;
Total capital employed = $2,415;
tax rate = 30%.
The company’s WACC is 11.45%.
What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar.
Step by Step Solution
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Step: 1
To calculate Economic Value Added EVA you can use the following formula EVA Net Operating Profi...
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
