Question
Determine the Economic Value Added (EVA) for Purple Monkey Incorporated based on the information below: Sales $20,000 Operating Costs $5,000 Depreciation $1,000 Earnings before Interest
Determine the Economic Value Added (EVA) for Purple Monkey Incorporated based on the information below:
Sales $20,000
Operating Costs $5,000
Depreciation $1,000
Earnings before Interest and Taxes (EBIT) $14,000
WACC 8.00%
Tax Rate 40%
Investor-supplied capital
1.$20,000
2. $8,400
3. $12,880
4.$6,800
5.$1,600
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
