Jeans had net income of $16000000. Include in income was interest expense of $ 1300000. The operation tax rate is 40%. Estimated cost of capital is 12% .

Calculate economic value added EVA for blue jeans?

  

The abridged balance-sheet of Blue Jeans is as below: Amount Liabilities Current liabilities Accounts payable Short-term debt Long term debt 6% Senior Notes 6.5% Junior notes Share Capital Total Assets Property, Plant Equipment 30,000,000 Current assets 15,000,000 90,000,000 80,000,000 10,000,000 225,000,000 Total & Accounts Receivables Inventory Cash Amount 180,000,000 25,000,000 15,000,000 5,000,000 225,000,000