Endotrope Corporation has an after-tax operating income of $3,200,000 and a 9% weighted-average cost of capital. Assets total $7,000,000 and current liabilities total $1,800,000. On the basis of this information, Endotrope's economic value added is:
A. $3,992,000.
B. $2,732,000.
C. $3,668,000.
D. $2,408,000.
E. None of the answers is correct.
Answer: B
You might also like to view...
When using the test data method, the presence of multiple error messages indicates a flaw in the preparation of test transactions
Indicate whether the statement is true or false
Briefly define the characteristics of an effective goal.
What does a diagnostic control system enable a change leader to do?
a. Understand critical performance variables and adjust their approach to accomplish the change goals b. Decide midway through the change project whether the vision was indeed the right one c. Helps deal with strategic uncertainties d. Identifies risks to be avoided and when those lines are being crossed
The publisher of a business magazine wants to make several major changes in the magazine's content and format. Which of the following will enable the publisher to understand the changes that will most likely be welcomed by its readers?
a. Product differentiation b. Cannibalization c. Marketing research d. Planned obsolescence