Question
Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted
Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%.
sales $5,000,000
Operating income $1,000,000
total asset $10,000,000
current liabilities $500,000
What is the division's economic value added?
| $60,000 | ||
| $130,000 | ||
| $270,000 | ||
| $430,000 |
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New Auditors Guide To Internal Auditing
Authors: Bruce R. Turner
1st Edition
1634540549, 978-1634540544
