Question
If division 1 has capital of $26,250,000, CL of $6,000.000, operating profit before tax of $2,700,000 and EVA of $270,000 and division 2 has invested
If division 1 has capital of $26,250,000, CL of $6,000.000, operating profit before tax of $2,700,000 and EVA of $270,000 and division 2 has invested capital of $3,000,000, CL of $1,500,000, operating profit before tax of $600,000 and EVA of $300,000. Who has the better EVA? Is it always the division with the highest EVA amount?
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Financial Accounting Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
1111464936, 978-1111464936
