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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