Falconer Company had net (after-tax) income last year of $14,479,218 and total capital employed of $131,869,720. Falconer's actual cost of capital was 10%. Required: 1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $ 2. Conceptual Connection: Is Falconer creating or destroying wealth?

Falconer Company had net (after-tax) income last year of $14,479,218 and total capital employed of $131,869,720. Falconer's actual cost of capital was 10%. Required: 1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $ 2. Conceptual Connection: Is Falconer creating or destroying wealth?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7A: Using Wacc To Complete The Calibration Of Eva

Section: Chapter Questions

Problem 1EP

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