Norfolk Shipyards has $16 million in total investor-supplied operating capital, and its WACC is 10%. The shipyard has the following income statement:
Sales $10.0 million
Operating costs 6.0 million
Operating income (EBIT) $ 4.0 million
Interest expense 2.0 million
Earnings before taxes (EBT) $ 2.0 million
Taxes (40%) 0.8 million
Net income $ 1.2 million
What is Norfolk Shipyard’s EVA?
$1,000,000
$760,000
$920,000
$640,000
$800,000
Sales $10.0 million
Operating costs 6.0 million
Operating income (EBIT) $ 4.0 million
Interest expense 2.0 million
Earnings before taxes (EBT) $ 2.0 million
Taxes (40%) 0.8 million
Net income $ 1.2 million
What is Norfolk Shipyard’s EVA?
$1,000,000
$760,000
$920,000
$640,000
$800,000
