Economic Value Added

Falconer Company had net $($after$-$tax$)$ income last year of $$12,375,400$ and total capital employed of $$111,754,000.$ Falconer's actual cost of capital was $9\%.$ Required:

Calculate the EVA for Falconer Company.

$

Conceptual Connection: Is Falconer creating or destroying wealth?

Falconer is creating wealth