Question
Eiggano Enterprises reported $210,000 of sales and $115,500 of operating costs (including depreciation).The firm has $200,000 of total invested capital, the weighted average cost of
Eiggano Enterprises reported $210,000 of sales and $115,500 of operating costs (including depreciation).The firm has $200,000 of total invested capital, the weighted average cost of that capital (the WACC) was 8.0%, and the federal-plus-state income tax rate was 25%.What was the company's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year?
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
