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Consider the following case: Last year, Jackson Tires reported net sales of $60 million...

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Accounting

Consider the following case:
Last year, Jackson Tires reported net sales of $60 million and total operating costs (including depreciation) of $39 million. It had $95 million of investor-supplied capital, with an after-tax cost of 7.5%. If the companys tax rate is 25%, how much value did its management create or lose for Jackson Tire during the year?
$37.875 million
$64.125 million
$1.509 million
$8.625 million

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