really lost on this question Score: 0 of 2 pts 8 of 8 (2 complete) HW Score: 11.

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really lost on this question

Score: 0 of 2 pts 8 of 8 (2 complete) HW Score: 11.11%, 4 of 36 pts Problem 4-12 (similar to) E Question Help ick and Alexis Resun to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. This past (Economic Value Added) K. Johnson, Inc.'s managers w year, the firm eamed an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. it has been estimated th investors have an opportunity cost on their funds of 16 percent, which is the same as the firm's overall cost of capital. The firm's total assets for the year were analysis to evaluate the firm's performance? Assume that the firm has no debt ic value created or destroyed by the firm. How does your finding support or fail to support what you would conclude using ratio economic value created or destroyed by the firm? Enter a positive number for EVA created or a negative number for EVA destroyed. tutor spri SL 1 million (Round to one decimal place.) BootCamp5 AC Course Hero Enter your answer in the answer box and then click Check Answer 29

Explanation / Answer

EVA = (operating return on assets – cost of all capital)*total assets

= (.12 - .16) * 200 Million

= -8 Million

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