GPD Corporation has operating income (EBIT) of $300,000, total assets of $1,500,000, and its capital structure consists of 40 percent debt and 60 percent equity. Total assets were equal to total operating capital. The firm's after-tax cost of capital is 11 percent and its tax rate is 40 percent. The firm has 50,000 shares of common stock currently outstanding and the current price of a share of stock is $30.00. 

 

What is the firm's Economic Value Added (EVA)?

Answer rating: 100% (QA)

Solution Economic Value Added EVA is a measure of a companys financial performance based on the r... View the full answer