Economic value added created or destroyed drew? concrete

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Drew Concrete uses Economic Value Added as a financial performance measure. Drew has $ 230 million in? assets, and the firm has financed its assets with 30?% equity and 70?% debt with an interest rate of 6?%. The? firm's opportunity cost on its funds is 14?%, while the operating return on the? firm's assets is 11 %. a. What is the Economic Value Added created or destroyed by Drew? Concrete? b. What does Economic Value Added? measure? a. What is the Economic Value Added? (EVA) created or destroyed by Drew? Concrete? Enter a positive number for EVA created or a negative number for EVA destroyed. ?$ nothing million. ?(Round to one decimal? place.) b. What does Economic Value Added? measure? ?(Select the best choice? below.) A. Economic Value Added? (EVA) measures the rate of return earned on the common? stockholders' investment. B. Economic Value Added? (EVA) measures a? firm's ability to meet its interest payments from its annual operating earnings. C. Economic Value Added? (EVA) provides an approach to evaluate a? firm's performance in terms of shareholder value creation. D. Economic Value Added? (EVA) provides an approach to indicate the rate of return earned on the? firm's assets.

Reference no: EM131982604

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