Falconer Company had net (after-tax) income last year of $14,479,218 and total capital employed of $131,869,720. Falconer's actual cost of capital was 10%. Required: 1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $ 2. Conceptual Connection: Is Falconer creating or destroying wealth?
Falconer Company had net (after-tax) income last year of $14,479,218 and total capital employed of $131,869,720. Falconer's actual cost of capital was 10%. Required: 1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $ 2. Conceptual Connection: Is Falconer creating or destroying wealth?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Economic Value Added
Falconer Company had net (after-tax) income last year of $14,479,218 and total capital employed of $131,869,720. Falconer's actual cost of capital was 10%.
Required:
1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar.
$
2. Conceptual Connection: Is Falconer creating or destroying wealth?
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