Question: QUESTION III A. Briefly explain how EVA differs from residual income with regards to financial analysis. Write no more than one brief, clear sentence. Be

QUESTION III

A. Briefly explain how EVA differs from residual income with regards to financial analysis. Write no more than one brief, clear sentence. Be specific!

B. Calculate EVA for AA Corp, considering that its Total Debt is $350,000 and Total Shareholders Equity is $750,000. Net operating profit (after taxes) was $50,000 and its WACC is 4.5%. Explain your answer, in one short sentence or a few words.

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