A A company that uses EVA reported the following results for 2011 and 2012 (in millions): Average
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A A company that uses EVA reported the following results for 2011 and 2012 (in millions):
Average adjusted invested capital was $20,308 million in 2011 and $19,591 million in 2012, and the cost of capital increased from 9 percent in 2011 to 10 percent in 2012.
1. Compute the company’s EVA for 2011 and 2012.
2. Compare the company’s performance in creating value for its shareholders in 2011 with that in 2012.
Cost Of CapitalCost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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