Question
Sanchez Company reports the following information: Net operating profit after taxes $500,000 Adjusted net operating profit after taxes $670,000 Average invested capital $500,000 Adjusted average
Sanchez Company reports the following information:
Net operating profit after taxes $500,000
Adjusted net operating profit after taxes $670,000
Average invested capital $500,000
Adjusted average invested capital $700,000
After-tax cost of capital 10%
The adjusted figures reflect adjustments used by Stern Stewart & Company. What is the EVA for Sanchez Company?
| A. | $600,000 | |
| B. | $620,000 | |
| C. | $430,000 | |
| D. | $450,000 |
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Managerial Accounting
Authors: John Wild, Ken Shaw, Barbara Chiappetta
8th Edition
1264111924, 9781264111923
