Increported $12,500 of Sales and $7,025 of Operating Costs the Company

question 63

Multiple Choice

Inc.reported $12,500 of sales and $7,025 of operating costs 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

---

Definitions:

Indirect Pressure

Influence or coercion applied in a non-direct manner, often through hints, suggestions, or the manipulation of information.

Self-Promotion

The act of highlighting one's own skills, accomplishments, or qualities to advance personal or professional goals, often used in job searches or career advancement.

High Cohesiveness

The degree to which members of a group or organization are attracted to each other and motivated to stay in the group.

Sucker Effect

A reduction in effort by members of a group based on the perception that others are not making their fair share of effort.