Compute the May 20xx EVA for an Investment Center with the Following

question 99

Multiple Choice

Compute the May 20xx EVA for an investment center with the following information: $\begin{array}{|lr|}\hline \text { Pre-tax operating income for May 20xx } & \$ 18,000,500 \\\text { Income tax expense for May 20xx } & 5,100,000 \\\text { Assets at May 31, 20xx } & 13,200,500 \\\text { Current liabilities at May 31, 20xx } & 10,000,000 \\\text { Long-term liabilities at May 31, 20xx } & 3,500,000 \\\text { Minimum desired rate of return } & 19 \% \\\hline\end{array}$

• A) $12,292,405
• B) $12,710,500
• C) $11,931,500
• D) $12,235,500

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Definitions:

Ownership Interest

The proportion of a company or property owned by an individual or entity, often represented as a share of equity.

Capital Balances

The amounts of money invested by owners or shareholders in a company, reflecting the net assets owned by the investors.

Profit Sharing

A company policy of distributing a portion of its profits to its employees as a form of bonus or incentive.

Ownership Interest

A stake or share in the ownership of a business or property, representing a claim on its assets and profits.