=+4 Sunshine Motorbikes Ltd, whose tax rate is 30%, has two sources of funds: long-term debt with

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=+4 Sunshine Motorbikes Ltd, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $20000000 at an interest rate of 7.5%, and equity capital with a market value of $6250000 and a cost of equity of 9%. Applying the same weighted-average cost of capital (WACC) to each division, calculate EVA® for each division.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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