Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,027; Total assets =

ABC Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,027; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,394; and tax rate = 30%. The companys WACC is 10.1%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar.

Group of answer choices

$469

$477

$483

$480

$472

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Airline Finance

Authors: Peter S. Morrell

4th Edition

1351959743, 978-1351959742

More Books

Students also viewed these Finance questions

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago