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The ABS Company Has a Capital Base of $100 Million

Question 67

Multiple Choice

The ABS company has a capital base of $100 million, an opportunity cost of capital (k) of 15%, a return on assets (ROA) of 9%, and a return on equity (ROE) of 18%. What is the economic value added (EVA) for ABS?


A) $8 million
B) -$6 million
C) $3 million
D) -$4 million

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