For 2014,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 2014?
A) $1,670
B) $1,758
C) $1,850
D) $1,943
E) $2,040
Correct Answer:
Verified
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