HHH Inc.reported $12, 500 of sales and $7, 025 of operating costs (including depreciation) .The company had $18, 750 of investor-supplied operating assets (or capital) , the weighted average cost of that capital (the WACC) was 9.5%, and the federal-plus-state income tax rate was 40%.What was HHH's Economic Value Added (EVA) , i.e., how much value did management add to stockholders' wealth during the year?
A) $1, 357.13
B) $1, 428.56
C) $1, 503.75
D) $1, 578.94
E) $1, 657.88
Correct Answer:
Verified
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