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(Bonus Question) Plain Corporation has before-tax operating income of $3,600,000. Average total assets total $7,000,000 and current liabilities total $1,800,000. Plain has a 30 percent
(Bonus Question) Plain Corporation has before-tax operating income of $3,600,000. Average total assets total $7,000,000 and current liabilities total $1,800,000. Plain has a 30 percent tax rate. Using this information and the information below on Plain's capital structure, calculate Plain's economic value added (EVA). Interest rate on debt capital Cost of equity capital Market value of debt capital Market value of equity capital 8 percent 22 percent $30 million $75 million
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