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Calculate EVA (economic value added) Balance sheet Cash and short-term investments 7000 Current liabilities 20000 Other current assets 10000 Long-term debt 35000 Non-current assets 62000
Calculate EVA (economic value added)
Balance sheet
Cash and short-term investments | 7000 | Current liabilities | 20000 | |
Other current assets | 10000 | Long-term debt | 35000 | |
Non-current assets | 62000 | |||
Total assets | 79000 | Equity | 24000 |
Income statement
Operating income | 7000 | |
Interest payment | 500 | |
Income before taxes | 6500 | |
Taxes | 1300 | |
Net income | 5200 |
The company's WACC is 8%.
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To calculate Economic Value Added EVA well use the formula EVA ...
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