Its weighted average cost of capital is 9 and its


For 2011, Everyday Electronics reported $22.5 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of investor-supplied operating capital. Its weighted average cost of capital is 9% and its federal-plus-state income tax rate was 35. What was the firm's Economic Value Added (EVA), that is, how much value did management add to stockholders' wealth during 2011?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Its weighted average cost of capital is 9 and its
Reference No:- TGS0601870

Expected delivery within 24 Hours