What is innovative products companys economic value added


Following is information from Innovative Products Company's financial statement:
Operating income, EBIT $750,000
Invested Capital $3,000,000
Marginal tax rate 35%
Number of common
shares outstanding 800,000
Average cost of funds 10%

What is Innovative Products Company's economic value added (EVA)?

 

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Finance Basics: What is innovative products companys economic value added
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