Question: Check my answer, please. RJS generated $65,000 net income this year. The firm's financial statements also show that its interest expense was $40,000, its marginal

Check my answer, please.

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?

I got an EBIT of $385,000.00

$385,000.00 x (1-.35) - [(.12) x ($800,000.00)} = $154,250.00

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