Ramirez Company has a weighted-average after-tax cost of capital of 12%; $320,000 in long term assets; $80,000 in current assets; and $400,000 in capital.In order to create Economic Value Added,net operating profit after taxes must exceed
A)$26,400.
B)$38,400.
C)$ 7,200.
D)$16,800.
E)$48,000.

Question

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The Answer of Ramirez Company has a weighted-average after-tax cost of capital of 12%; $320,000 in long term assets; $80,000 in current assets; and $400,000 in capital.In order to create Economic Value Added,net operating profit after taxes must exceed
A)$26,400.
B)$38,400.
C)$ 7,200.
D)$16,800.
E)$48,000.

Ramirez Company Has a Weighted-Average After-Tax Cost of Capital of 12%;