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CTP · Question #259
(Topic 3) For ABC Company in the last fiscal year, the operating profit was $8,500,000, the tax rate was 33%, the total capital was $75,000,000, and the WACC was 9.7%. What was the EVA for ABC?
The correct answer is B. $(1,580,000). See the full explanation below for the reasoning.
Question
- (Topic 3)
For ABC Company in the last fiscal year, the operating profit was $8,500,000, the tax rate was 33%, the total capital was $75,000,000, and the WACC was 9.7%. What was the EVA for ABC?
Options
- A$(4,470,000)
- B$(1,580,000)
- C$1,225,000
- D$8,500,000
How the community answered
(35 responses)- A6% (2)
- B77% (27)
- C14% (5)
- D3% (1)
Community Discussion
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