Assume ABC Electronics had $50,000,000 in sales and $40,000,000 of operating costs (including depreciation).The company had $10,000,000 of operating capital supplied by investors.Its weighted average cost of capital (cost of financing) was 10%, and the tax rate was 30%.What was the firm's Economic Value Added (EVA) for the year?

A. $9,000,000

B. $2,000,000

C. $6,000,000

D. $10,000,000

Select the correct statement.

A. A taxpayer that falls in the 35% tax bracket will pay a 35% tax rate on all taxable income.

B. The number of tax brackets is significantly reduced under the Tax Act of 2018; tax rates on capital gains, dividends, and interest income are also significantly reduced.

C. According to a distributional analysis of the Tax Act of 2018 by the Tax Policy Center, upper income taxpayers received a greater reduction in taxes than lower or middle income taxpayers.

D. Under President Obama all tax rates that applied to tax brackets were increased; the Tax Act of 2018 decreased all tax rates in all tax brackets.