Problemspirit corp has 40 million in total operating, Ask an Expert

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Problem:

Spirit Corp. has $40 million in total operating capital. The company's WACC is 14%. The company has the following income statement.

Sales = $50 million
O&M = $30 million
EBIT = $20 million
Interest expense = $6 million
EBT = $14 million
Taxes = 35% or $4.9 million
Net income = $9.1 million

Required:

Question: What is Spirit's EVA?

Note: Provide support for your underlying principle.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170569

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