Question
In: Finance
Consider the following data for the company A.
Consider the following data for the company A.
Equity = $500. Debt = $400.
ROC= 12%. Cost of capital = 6%.
What is the company’s EVA?
Solutions
Expert Solution
_______________________________
_______________________________
Economic Profit = 12% * (500 + 400)
= 108
Required Profit = 6% * (500 + 400)
= 54
EVA = 108 - 54
= 54
jeff jeffy answered 2 years agoRelated Solutions
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