RJS generated $65,000 net income this year. The firms financial statements also show that its interest expense
Question:
RJS generated $65,000 net income this year. The firm’s financial statements also show that its interest expense was $40,000, its marginal tax rate was 35 percent, and its invested capital was $800,000. If its average cost of funds is 12 percent, what was RJS’s economic value added (EVA) this year?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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NI 65000 T 35 Interest expense 40000 Invested capital 800...View the full answer
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