For 2021, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including
Question:
For 2021, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 25%. What was the firm’s economic value added (EVA), that is, how much value did management add to stockholders’ wealth during 2021?
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Related Book For 
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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