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EBIT = ?? Assume T = Tax rate = 35% Total capital from financing = (Debt + Preferred + Equity) Economic value added EBIT
EBIT = ?? Assume T = Tax rate = 35% Total capital from financing = (Debt + Preferred + Equity) Economic value added EBIT * (1-T)- (Total capital) * WACC. Economic value added Question: tax rate EBIT EBIT* (1-T) WACC Investor supplied capital Economic value added Is the economic value added positive or negative? What is the implication from the result? 9% 3,714,000.00 3,366,369.60 3.71% 2,394,319,260.00 -85,401,662.18
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
77639731, 978-0077639730
