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What is their economic value added or residual income

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Reference no: EM133153325

Question - If the company's after-tax operating income is $2,000 (Net Income plus after-tax interest expense) and their Total Capitalization is $20,000 ($15,000 in total shareholder equity and $5,000 in Long-Term debt) with their cost of capital at 7.5%, what is their Economic Value Added (EVA) or Residual Income (The following are in multiples of 1000)?

Reference no: EM133153325

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