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Question
A firm has earnings before interest and taxes (EBIT) of $22 million, total invested capital of $74 million, and average cost of funds of 12 percent. The firm has a marginal tax rate of 35 percent, and 4.2 million shares of the firm are outstanding. What is the firm's economic value added (EVA) of the firm?
a. $4.83 million
b. $5.42 million
c. $6.33 million
d. $3.61 million
e. $7.97 million
Answer
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Related questions
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