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Here are simplified financial statements of Phone Corporation from a recent year INCOME STATEMENT (Figures in millions of dollars Net sales 13193 Cost of goods sold 460 Other expens

Here are simplified financial statements of Phone Corporation from a recent year:

 

INCOME STATEMENT
(Figures in millions of dollars)
Net sales 13,193
Cost of goods sold 4,060
Other expenses 4,049
Depreciation 2,518
 
Earnings before interest and taxes (EBIT) 2,566
Interest expense 685
 
Income before tax 1,881
Taxes (at 35%) 658
 
Net income 1,223
Dividends 856
 


 

BALANCE SHEET
(Figures in millions of dollars)
  End of Year Start of Year
Assets    
Cash and marketable securities 89 158
Receivables 2,382 2,490
Inventories 187 238
Other current assets 867 932
 

Total current assets 3,525 3,818
Net property, plant, and equipment 19,973 19,915
Other long-term assets 4,216 3,770
 

Total assets 27,714 27,503
 



Liabilities and shareholders%u2019 equity    
Payables 2,564 3,040
Short-term debt 1,419 1,573
Other current liabilities 811 787
 

Total current liabilities 4,794 5,400
Long-term debt and leases 7,018 6,833
Other long-term liabilities 6,178 6,149
Shareholders%u2019 equity 9,724 9,121
 

Total liabilities and shareholders%u2019 equity 27,714 27,503
 




 

Phone Corp.%u2019s cost of capital was 8.3%.

 

What was Phone Corp.%u2019s economic value added? (Enter your answer in millions rounded to 2 decimal places.)

 

Economic value added $ millions

 

May 14 2020 View more View Less

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