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$5$ of $50$

$1$

Mark

You are analyzing Pegasus Ltd$..$ Its financial data is as follows: net income is $$170$ million, interest before tax is $$40$ million, relevant tax rate is $24\%,$ cost of capital is $7\%,$ long$-$term debt is $$1,200$ million, shareholders' equity is $$1400.$ What is this company's economic value added?

a$.$ $$18\mathrm{.}40$ million

b$.$ $$19\mathrm{.}20$ million

c$.$ $$20\mathrm{.}00$ million

d$.$ $$17\mathrm{.}60$ million

e$.$ $$16\mathrm{.}80$ million