ABC Inc. reported $10,750 of sales and $7,025 of operating c…
ABC Inc. reported $10,750 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 25%. What was ABC’s Economic Value Added (EVA), i.e., how much value did management add to stockholders’ wealth during the year? Select the correct answer.