A firm has an EBIT of $22 million, total invested capital of $74 million, and the average cost of funds of 12%. The firm has a marginal tax rate of 35% and 4.2 million shares of the firm are outstanding. What is the EVA of the firm??

A. ?$4.83 million
B. ?$5.42 million
C. ?$6.33 million
D. ?3.61 million
E. ?$7.97 million


Answer: B

Business

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