Marshall Industries operates as an investment center.Buddy Hall,the region's division manager,has set a required minimum rate of return of 15%.Marshall's total assets are $350,000,current liabilities are $150,000,and operating income is $60,000.The company's weighted-average cost of capital is 18% and its tax rate is 28%.
Required:

Calculate Marshall’s EVA. Show your work.

Question

Marshall Industries operates as an investment center.Buddy Hall,the region's division manager,has set a required minimum rate of return of 15%.Marshall's total assets are $350,000,current liabilities are $150,000,and operating income is $60,000.The company's weighted-average cost of capital is 18% and its tax rate is 28%.
Required:

Calculate Marshall’s EVA. Show your work.

Quizplus · Accepted Answer

The Answer of Marshall Industries operates as an investment center.Buddy Hall,the region's division manager,has set a required minimum rate of return of 15%.Marshall's total assets are $350,000,current liabilities are $150,000,and operating income is $60,000.The company's weighted-average cost of capital is 18% and its tax rate is 28%.
Required:

Calculate Marshall’s EVA. Show your work.

Marshall Industries Operates as an Investment Center