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ALA Inc, has sales of $15,000,000, operating costs (including depreciation) of $6,000,000, and operating income (EBIT) of $9,000,000. Its WACC is 9.50% and the corporate

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ALA Inc, has sales of $15,000,000, operating costs (including depreciation) of $6,000,000, and operating income (EBIT) of $9,000,000. Its WACC is 9.50% and the corporate tax rate is 40%. Assume its investor-supplied operating capital (total net operating capital) is $20,000,000. What is the Economic Value Added (EVA) of the company? a. 2,000,000 b. 2,300,000 c. 1,900,000 d. 3,500,000

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