Bbbs marginal tax rate is 40 percent its interest expense, Finance Basics

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Bbbs marginal tax rate is 40 percent its interest expense

Backhaus Beer Brewers (BBB) just announced that the current fiscal year's net income was $1.2 million. BBB's marginal tax rate is 40 percent, its interest expense for the year was $1.5 million, it has $8 million of invested capital, and its average cost of funds was 10 percent. What is BBB's economic value added (EVA) for the current year?

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Finance Basics: Bbbs marginal tax rate is 40 percent its interest expense

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Finance Basics: Bbbs marginal tax rate is 40 percent its interest expense

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