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Following is information for the Fulcrum Companys three business segments located in Europe: Segment A B C Pretax operating income 17,200,000 8,600,000 12,900,000 Current assets
Following is information for the Fulcrum Companys three business segments located in Europe:
Segment | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
A | B | C | ||||||||
Pretax operating income | 17,200,000 | 8,600,000 | 12,900,000 | |||||||
Current assets | 17,200,000 | 12,900,000 | 17,200,000 | |||||||
Long-term assets | 68,800,000 | 55,900,000 | 34,400,000 | |||||||
Current liabilities | 8,600,000 | 4,300,000 | 6,450,000 |
Fulcrums applicable tax rate for the segments is 30%, and its weighted average cost of capital for each segment is 10%.
Which segment has the highest EVA? (Show a negative amount preceded by a minus sign, e.g. -100,000 or (100,000).)
Segment | ||||||
---|---|---|---|---|---|---|
A | B | C | ||||
EVA: |
Segment A OR Segment B OR Segment C | has the highest EVA. |
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