Measure economic value added
Response to the following problem:
Compute economic value added (EVA®) for Schaeffer Software. The company's cost of capital is 4%. Net income was $761 thousand, interest expense $401 thousand, beginning long-term debt $620 thousand, and beginning stockholders' equity was $3,010 thousand. Round all amounts to the nearest thousand dollars. Should the company's stockholders be happy with the EVA®?