Casey Motors Recently Reported the Following Information: ∙ Net Income

question 49

Multiple Choice

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

• A) -198,000
• B) -135,000
• C) -203,400
• D) -180,000
• E) -216,000

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