Question
MOVING to another question will save this response. Question 47 Springfield Corporation has a tax rate of 30%. Has a weighted average cost of capital
MOVING to another question will save this response. Question 47 Springfield Corporation has a tax rate of 30%. Has a weighted average cost of capital of 10.23% Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year: Total Assets Current Liabilities Blue Div. Gold Div. $9.500.000 $3,100,000 $11,000,000 $2.200.000 Operating Income $1.059,000 $1,200,000 What is Economic Value Added (EVA) for the Blue Division? (Round intermediary calculations to four decimal places.) a. -$230.550 b. $86,580 c. $404.280 d. -$86,580 A Moving to another question will save this response. DELL Care Inc. has two divisions that operate independently of one another. The financial data for the year 2020 reported the following results: Sales Operating income Taxable income investment North $6,000,000 1.900.000 1.500.000 14.000.000 South $5,000,000 1.800.000 800,000 11,000,000 The company's desired rate of return is 10%. Income is defined as operating income. What are the respective residual incomes for the North and South Divisions? a. -$500,000 and -$700,000 b. $500,000 and $700,000 c.-$100,000 and $300,000 d. $100,000 and $300,000 Moving to another question will save this response. The Cybertronics Corporation reported the following information for its Cyclotron Division: Revenues Operating costs Operating assets $2,500,000 1,600,000 1.300.000 Income is defined as operating income. What is the Cyclotron Division's investment turnover ratio? a. 0.64 b. 1.56 c. 1.92 d. 0.52 Moving to another question will save this response
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started