What is the economic value added

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Question 1. Seltzer Inc. has an Operating Income of $600,000, Total Assets of $4,000,000, and Current Liabilities of $250,000. If the company's Effective Tax Rate is 30% and their Weighted Average Cost of Capital is 13%, what is their Economic Value Added (EVA)?

Question 2. Company X has Total Assets of $4,000,000 and an Operating Income of $600,000. If the company's Required Rate of Return is 16%, what is the company's Residual Income?

Reference no: EM132515992

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