A company's net income is $850; the after-tax interest is $216; the cost of capital is 6%;

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A company's net income is $850; the after-tax interest is $216; the cost of capital is 6%; the average long-term debt is $8,000, the average current liabilities are $1,000 and the average shareholders' equity for the period is $9,000.

What is the company's economic value added?

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Entrepreneurial Finance

ISBN: 978-1305968356

6th edition

Authors: J. Chris Leach, Ronald W. Melicher

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Posted Date: Mar 21, 2024 12:26 PM

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A company's net income is $850; the after-tax interest is $216; the cost of capital is 6%;

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Economic Value AddedNet operating profit after TaxWeighted average cost of Capit... View the full answer

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