For 2019,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 11%,and the federal-plus-state income tax rate was 25%.What was the firm's Economic Value Added (EVA) ,i.e. ,how much value did management add to stockholders' wealth during 2019?
A) $1,727
B) $1,398
C) $3,256
D) $2,101
E) $2,620
Correct Answer:
Verified
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