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RJS generated $78,000 net income this year. The firm's financial statements also show that its interest expense was $80,000, its marginal tax rate was
RJS generated $78,000 net income this year. The firm's financial statements also show that its interest expense was $80,000, its marginal tax rate was 35 percent, and its invested capital was $1,150,000. If its average cost of funds is 18 percent, what was RJS's economic value added (EVA) this year? Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any.
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
