Question
Question 3 (EVA): XYZ Company's net operating profit before taxes is $180 million. The tax rate is 25%. XYZ's total assets (invested capital) are $950million,
Question 3 (EVA): "XYZ Company's net operating profit before taxes is $180 million. The tax rate is 25%. XYZ's total assets (invested capital) are $950million, and current liabilities are $130 million. The weighted average cost of capital (WACC) is 10%." Required: Compute the economic value added (EVA). To do that, first compute NOPAT = $ _____ million (if you get say $55.4million, enter 55.4, not 55,400,000) After that, compute EVA = $ _____ million (If you get a negative number, enter it with a minus sign. E.g., if you got negative $3.25 million, enter -3.25)
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