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

question 37

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 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

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Definitions:

Psychological Motivation

Psychological Motivation refers to the internal processes and desires, such as needs, wants, and goals, that drive individuals to pursue and achieve certain actions or outcomes.

Achievement

A significant accomplishment or attainment, often marked by effort or skill.

Role Models

Individuals admired for their characteristics or accomplishments, who serve as examples for others to emulate.

Emergence

The process of coming into being or of becoming prominent.