Cornwall Company has two divisions, A and B. Information for each division is as follows: A...
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Cornwall Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division $40,000 $260,000 Asset base for division $100,000 $1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is EVA for Division A? Oa. $28,000 Ob. $25,000 Oc. $15,000 Od. $40,000 13 Cornwall Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division $40,000 $260,000 Asset base for division $100,000 $1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is EVA for Division A? Oa. $28,000 Ob. $25,000 Oc. $15,000 Od. $40,000 13
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