Afirm has an ebit of $22 million, total invested capital of $74 million, and the average cost of funds of 12%. the firm has a marginal tax rate of 35% and 4.2 million shares of the firm are outstanding. what is the eva of the firm?

ANSWER

Find out the  EVA of the firm.

To proof

As given

A firm has an EBIT of $22 million

total invested capital of $74 million,

the average cost of funds of 12%.

The firm has a marginal tax rate of 35% and 4.2 million shares of the firm are outstanding.

Formula

calculate economic value

EVA = EBIT (1-T) - [(Average cost of funds) × (Invested capital)]

12 % is written in the decimalform

= 0.12

35 % is written in the decimal form

=0.35

put the value in the formula

= 22× ( 1- 0.35) - [ (0.12 × 74) ]

= 22 × 0.65 - 8.88

= $5.42million

Therefore  $5.42million is the EVA of the firm

Hence proved

question

what is the value of the third quartile of the data set represented by this box plot? a. 19 b. 21 c. 26 d. 29

answer

c

ddd

step-by-step explanation: