Marx Company has total assets of $400,000, a 14% target rate of return, a $10,000 residual income, a 10% weighted average cost of capital, and current liabilities of $80,000. What is Marx Company's
economic value added assuming that the income tax rate is 30%?
A) $1,400
B) $11,200
C) $6,200
D) $14,200

Question

Marx Company has total assets of $400,000, a 14% target rate of return, a $10,000 residual income, a 10% weighted average cost of capital, and current liabilities of $80,000. What is Marx Company's
 economic value added assuming that the income tax rate is 30%?
A) $1,400
B) $11,200
C) $6,200
D) $14,200

Quizplus · Accepted Answer

The Answer of Marx Company has total assets of $400,000, a 14% target rate of return, a $10,000 residual income, a 10% weighted average cost of capital, and current liabilities of $80,000. What is Marx Company's
 economic value added assuming that the income tax rate is 30%?
A) $1,400
B) $11,200
C) $6,200
D) $14,200

Marx Company Has Total Assets of $400,000, a 14% Target