Question
Casey Motors recently reported the following information: Net income = $750,000. Tax rate = 40%. Interest expense = $200,000. Total invested capital employed = $9
Casey Motors recently reported the following information:
Net income = $750,000. Tax rate = 40%. Interest expense = $200,000. Total invested capital employed = $9 million. After-tax cost of capital = 10%.
What is the companys EVA?
| a. | -$35,100 | |
| b. | -$34,500 | |
| c. | -$30,000 | |
| d. | -$32,100 | |
| e. | -$29,400 |
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
