Ingram Barge Co. had revenues of $750 million last year. The operating profit margin is 21%, and the net profit margin is 11%. The growth rate is 4%.

Ingram Barge's book value of equity equal to $510 million, and book value of debt is equal to $440 million. The (equity) market capitalization is $862 million. IBCs debt consists entirely of 7.0 percent coupon, semi-annual bonds with 12 years remaining until maturity. The bonds are currently selling for 105.5% of par with a YTM of 6.338%. The required return on equity capital is estimated to be 9.25%, and the tax rate for IBC is 24%.

a. Compute the WACC for Ingram Barge Co. Show all work.

b. Compute the EVA for Ingram Barge.