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Use the following problem to answer the next two questions ABC corporation has EBIT of $150,000, Total assets= 600,000, and it capital structure consists of

Use the following problem to answer the next two questions

ABC corporation has EBIT of $150,000, Total assets= 600,000, and it capital structure consists of 30% debt and 70% equity. Total assets were equal to total operating capital. The firms after tax cost of capital is 10% and its tax rate is 40%. The firm has 10,000 shares of common equity outstanding and the current stock price is is $65 per share.

What is the firms MVA and EVA?

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