Casey Motors recently reported the following information: • Net income = $600,000.
• Tax rate = 40%.
• Interest expense = $200,000.
• Operating capital = $9 million.
• After-tax cost of capital = 10%.
What is the company's EVA?
A) ($300,000)
B) ($180,000)
C) $ 0
D) $200,000
E) $400,000

Question

Quizplus · Accepted Answer

The Answer of Casey Motors recently reported the following information: • Net income = $600,000.
• Tax rate = 40%.
• Interest expense = $200,000.
• Operating capital = $9 million.
• After-tax cost of capital = 10%.
What is the company's EVA?
A) ($300,000)
B) ($180,000)
C) $ 0
D) $200,000
E) $400,000

Casey Motors Recently Reported the Following Information: • Net Income