For 2018,Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation) .The company has $20,500 of total invested capital,the weighted average cost of that capital (the WACC) was 8%,and the federal-plus-state income tax rate was 40%.What was the firm's Economic Value Added (EVA) ,i.e. ,how much value did management add to stockholders' wealth during 2017?
A) $2,599
B) $1,921
C) $2,712
D) $2,373
E) $2,260
Correct Answer:
Verified
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