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Axel Corporation (which has a weighted-average cost of capital of 12%) has two divisions with the following information: Beta Division Cal Division Total Assets $720,000
Axel Corporation (which has a weighted-average cost of capital of 12%) has two divisions with the following information:
| Beta Division | Cal Division | |
| Total Assets | $720,000 | $550,000 |
| Current Liabilities | $220,000 | $110,000 |
| After-Tax Operating Income | $105,000 | $110,000 |
| ROI | 15% | 20% |
What is Beta Division's EVA?
Multiple Choice
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$30,000
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$57,200
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$45,000
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$3,000
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Auditing Text And Cases
Authors: W. Robert Knechel, Knechel
1st Edition
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