Problembarnes brothers has the following data for the year, Ask an Expert

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Problem:

Barnes' Brothers has the following data for the year ending 12/31/07: Net income = $600; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100. Barnes' weighted average cost of capital is 10%.

Required:

Question: What is its economic value added (EVA)?

Answer choices are:

a. $399.11

b. $420.11

c. $442.23

d. $465.50

e. $490.00

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148971

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