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For 2016, Sam's Electronics reported $32.5 million of sales and $28 million of operating costs (including depreciation). The company has $17 million of investor-supplied operating
For 2016, Sam's Electronics reported $32.5 million of sales and $28 million of operating costs (including depreciation). The company has $17 million of investor-supplied operating capital. Its weighted average cost of capital is 10% and its federal-plus-state income tax rate was 40%. What was the firms Economic Value Added (EVA), that is, how much value did management add to stockholders wealth during 2016?
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