Use the information below provided by Angel Baby Angel Company: Sales     8,250,000.00 Operating costs     4,725,000.00 Operating income     3,525,000.00 Interest expense     1,750,000.00 Earnings before taxes     1,775,000.00 Taxes (40%)        621,250.00 Net income     1,153,750.00             WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
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9. Use the information below provided by Angel Baby Angel Company:

Sales

    8,250,000.00

Operating costs

    4,725,000.00

Operating income

    3,525,000.00

Interest expense

    1,750,000.00

Earnings before taxes

    1,775,000.00

Taxes (40%)

       621,250.00

Net income

    1,153,750.00

           

WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)

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