For 2013, 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 10%, 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 2013?
A) $1,670
B) $1,758
C) $1,850
D) $1,943
E) $2,040
Correct Answer:
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