Question
Economic Value Added Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division
Economic Value Added
Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results:
| Adams Division | Jefferson Division | |||
| Net (after-tax) income | $611,050 | $324,450 | ||
| Total capital employed | 4,120,000 | 3,445,000 | ||
Washington's actual cost of capital was 13%.
Required:
1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. $
2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. $
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Auditing Information And Cyber Security Governance
Authors: Robert E Davis
1st Edition
1000416089, 9781000416084
