Casey Motors Recently Reported the Following Information

question 66

Multiple Choice

Casey Motors recently reported the following information:
• Net income = $600,000.
• Tax rate = 40%.
• Interest expense = $200,000.
• Total investor-supplied operating capital employed = $9 million.
• After-tax cost of capital = 10%.
What is the company's EVA?

• A) -$171,000
• B) -$180,000
• C) -$189,000
• D) -$198,450
• E) -$208,373

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Definitions:

Bytes

The basic unit of storage in computer memory, often consisting of 8 bits.

gPtr

Often used as a variable name in programming, typically denoting a pointer to a global variable or structure.

Compiler

A software tool that translates code written in a high-level programming language into machine language.

Pointers

Variables that store memory addresses, pointing to the locations where actual data is stored.