An ABC Company has a total capital of $51,000,000 and expects to earn 6% on its...

An ABC Company has a total capital of $51,000,000 and expects to earn 6% on its capital of 5%. However, due to economic instability and additional competition from oversee companies; the cost of capital is increased to 8%.

a. Calculate the ABC company’s economic value added?

b. For positive EVA, What is the earning of ABC?

Expert Solution

jeff jeffy answered 1 month ago

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