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Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a high - tech business, but Herbal's earnings have
Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a hightech business, but Herbal's earnings have averaged around $ million after tax, largely on the strength of its patented enzyme for making cats nonallergenic. The patent has eight years to run, and Herbal has been offered $ million for the patent rights.
Herbal's assets include $ million of working capital and $ million of property, plant, and equipment. The patent is not shown on Herbal's books. Suppose Herbal's cost of capital is
What is its EVA? A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to decimal place.
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