HHH Inc reported $12,500 of sales and $7,025 of operating costs (including depreciation). The company had $18,750 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 9.5%, and the federal-plus-state income tax rate was 40%. What was HHH's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the
year?
a. $1,357.13
b. $1,428.56
c. $1,503.75
d. $1,578.94
e. $1,657.88
c
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