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GPD Corporation has operating income (EBIT) of $300,000, total assets of $1,500,000, and its capital structure consists of 40 percent debt and 60 percent equity.

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GPD Corporation has operating income (EBIT) of $300,000, total assets of $1,500,000, and its capital structure consists of 40 percent debt and 60 percent equity. Total assets were equal to total operating capital. The firm's after-tax cost of capital is 11 percent and its tax rate is 40 percent. The firm has 50,000 shares of common stock currently outstanding and the current price of a share of stock is $30.00. What is the firm's Market Value Added (MVA)? a. $87,000 b. $29,500 c. $470,810 d. $600,000 e. $910,000

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