Barnes' Brothers has the following data for the year ending 12/31/10: Net income = $600; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100.Barnes' weighted average cost of capital is 10%.What is its economic value added (EVA)?
A)$399.11
B)$420.11
C)$442.23
D)$465.50
E)$490.00

Question

Quizplus · Accepted Answer

The Answer of Barnes' Brothers has the following data for the year ending 12/31/10: Net income = $600; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100.Barnes' weighted average cost of capital is 10%.What is its economic value added (EVA)?
A)$399.11
B)$420.11
C)$442.23
D)$465.50
E)$490.00

Barnes' Brothers Has the Following Data for the Year Ending