What was the company’s economic value added

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ABC's EBIT is $12 million. The depreciation expense is $0.5 million and interest expense is $0.5 million. The corporate tax rate is 45%. The company has 12 million in operating current assets and $6 million operating current liabilities. It has $5 million in net plant and equipment. The after-tax cost of capital (WACC) is 7%. Assume that the only non-cash item is depreciation. The total net operating capital last year was $6 million

What was the company’s economic value added (EVA)?

Reference no: EM13775548

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