1. You borrow $285,000; the annual loan payments are $40,698.8 for 30 years. What interest rate are you being charged? Round your answer to two decimal places. %
2. RJS generated $65,000 net income this year. The firm’s financial statements also show that its interest expense was $40,000, its marginal tax rate was 35%, and its invested capital was $800,000. If its average cost of funds is 12%, what was RJS’s economic value added (EVA) this year?