What is the company eva, Assume the company has a total of

What is the company eva

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Reference no: EM132039626

Togal Machine Tool Inc. had $5,000,000 last year in operating income. The company had depreciation expense of $1,000,000, interest expense of $875,000 and assumes it’s after tax cost of capital is 10%. The company’s tax rate is 40%. Assume the company has a total of $15,000,000 in shareholders equity, $15,000,000 in long-term bonds and $2,000,000 in preferred stock.

-What is the company’s EVA?

Reference no: EM132039626

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