HHH IncReported $12,500 of Sales and $7,025 of Operating Costs (Including

question 65

Multiple Choice

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 25%.What was HHH's Economic Value Added (EVA) , i.e., how much value did management add to stockholders' wealth during the year?

• A) $2,098.31
• B) $2,208.75
• C) $2,325.00
• D) $2,441.25
• E) $2,563.31

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