How much value did management create or lose

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Question - Consider this case: Last year, Jaskson Tires reported net sales of $40 million and total operating costs (including depreciation) of $26 million. It had $75 million of investor-supplied capital, with an after-tax cost of 10%. If the company's tax rate is 40%, how much value did it's management create or lose for the firm during the year?

1. $0.270 million

2. $0.900 million

3. $16.500 million

4. $37.500 million

Reference no: EM132003706

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