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EVA 3. Grandling Supermarkets Inc. reported $1,500,000 of sales and $900,000 of operating costs (including depreciation).

EVA

3. Grandling Supermarkets Inc. reported $1,500,000 of sales and $900,000 of operating costs (including depreciation). The company has $2,450,000 of investor-supplied capital, the after-tax cost of capital was 8%, and the federal-plus-state income tax rate was 35%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year?

a. $175,000

b. $194,000

c. $215,000

d. $240,000

e. $275,000

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b. $194,000 is the... View the full answer

Economic Value Added: It refers to addition in the value of a business... View the full answer

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