Casey Motors recently reported the following information:
• Net income = $600,000.
• Tax rate = 40%.
• Interest expense = $200,000.
• Total investor-supplied operating capital employed = $9 million.
• After-tax cost of capital = 10%.
What is the company's EVA?
A) -$171,000
B) -$180,000
C) -$189,000
D) -$198,450
E) -$208,373

Question

Quizplus · Accepted Answer

The Answer of Casey Motors recently reported the following information:
• Net income = $600,000.
• Tax rate = 40%.
• Interest expense = $200,000.
• Total investor-supplied operating capital employed = $9 million.
• After-tax cost of capital = 10%.
What is the company's EVA?
A) -$171,000
B) -$180,000
C) -$189,000
D) -$198,450
E) -$208,373

Casey Motors Recently Reported the Following Information