Gonzalez Company's after- tax operating income was $882 million. Total assets were $4,900 million and stockholder's equity was $2,050 million. Gonzalez Company's cost of capital was 10%. Gonzalez Company's EVA was:

Question

Quizplus · Accepted Answer

EVA = NOPAT - (Cost of Capital * Total Assets)EVA = $882 million - (10% * $4,900 million)EVA = $882 million - $490 millionEVA = $392 million

Gonzalez Company's After- Tax Operating Income Was $882 Million