Question
. Acacia Action Wear, Inc. has been provided by its lenders and owners with $96,000,000 to purchase assets. Managers estimate the weighted average cost of
. Acacia Action Wear, Inc. has been provided by its lenders and owners with $96,000,000 to purchase assets. Managers estimate the weighted average cost of capital for the companys typical investment projects to be 7.5% per year. The most recent years income statement showed Earnings Before Interest and Taxes (EBIT, or Operating Income) of $29,000,000, and the company paid income tax at a 23% average rate. What was Economic Value Added (EVA) for the year?
- A. $4,745,000
- B. $10,385,000
- C. $530,000
- D. $29,530,000
- E. $15,130,000
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
