For 2012, Everyday Electronics reported $22.5 million of sales and $18 million of operating costs (including depreciation).
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For 2012, Everyday Electronics reported $22.5 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of investor-supplied operating capital. Its weighted average cost of capital is 9% and its federal-plus-state income tax rate was 35%. What was the firm's Economic Value Added (EVA), that is, how much value did management add to stockholders' wealth during 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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Tax rate 35 WACC 9 Investorsupplied operating capital 15000000 Sales 22500000 O...View the full answer
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-1133541141
13th edition
Authors: Eugene F. Brigham, Joel F. Houston
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