Count On It Marketing Inc. has an ROCE of 21, a WACC of 9.35, and ...

[charchew]

Count On It Marketing Inc. has an ROCE of 21, a WACC of 9.35, and invested capital of 250,000. With this information estimate the firm's economic value added (EVA).
 
  A) 24,639
  B) 29,125
  C) 41,621
  D) There is not enough information to answer this question.

Question 2

With adjustable life insurance both the premiums and the face amount are adjustable.
 
  Indicate whether the statement is true or false

[elyse44]

Answer to Question 1

B
Explanation: B) EVA = (ROCE-WACC)  invested capital = (.21 - .0935 )  250,000 = 29,125.

Answer to Question 2

TRUE

[charchew]

YES! Correct, THANKS for helping me on my review

[jackie]

Thanks for the timely response, appreciate it