Calculate the economic value added (EVA) or residual income, as requested, for each of the following:
A. NOPAT = $ 100
Beginning book value of debt = $ 200
Beginning book value of equity = $ 300
WACC =11 percent
Calculate EVA.
B. Net income = € 5.00
Dividends = € 1.00
Beginning book value of equity = € 30.00
Required rate of return on equity = 11 percent
Calculate residual income.
C. Return on equity = 18 percent
Required rate of return on equity = 12 percent

Beginning book value of equity = € 30.00
Calculate residual income.