Hello,

I'm not looking for the answer to be given to me I am just looking for guidance on how to figure out this problem... could someone guide me in the right direction?

A company has a weighted average cost of capital of 12%, sales of $30,000, a profit margin of 16%, and an income tax rate of 30%. If the firm's total invested capital at the beginning of the year was $9,818, what is the Economic Value Added (EVA)?

I have found this, is this correct:

Net operating profit after tax - (weighted avg cost of capital x invested capital)= EVA

Yep, that's one of the common ways of expressing EVA. Good job... the boys at Stern Stewart would be proud.