For 2019, Gourmet Kitchen Products reported $24 million of sales and $19 million of operating costs (including depreciation). The company has $14 million of cotal invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2019? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

For 2019, Gourmet Kitchen Products reported $24 million of sales and $19 million of operating costs (including depreciation). The company has $14 million of cotal invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2019? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 20P

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