Question: Compute economic value added (EVA) for Beverly Software. The companys cost of capital is 5%. Net income was $770 thousand, interest expense $409 thousand, beginning

Compute economic value added (EVA) for Beverly Software. The company’s cost of capital is 5%. Net income was $770 thousand, interest expense $409 thousand, beginning long-term debt $700 thousand, and beginning stockholders equity was $3,060 thousand. Round all amounts to the nearest thousand dollars.

Should the company’s stockholders be happy with the EVA?

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