EVA

6.Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation).The company has $20,500 of investor-supplied capital, the weighted average cost of that capital (the WACC) was 10%, and the federal-plus-state income tax rate was 40%.What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year?

a.$1,670

b.$1,758

c.$1,850

d.$1,943

e.$2,040