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Need help ASAP. Thank you Show Attempt History Current Attempt in Progress It is the end of the third quarter, and Dorothy is evaluating the
Need help ASAP. Thank you
Show Attempt History Current Attempt in Progress It is the end of the third quarter, and Dorothy is evaluating the performance of two key divisions in the company. Both divisions had $53,000 cash available for investment in the fourth quarter, so Dorothy is now analyzing each division before a potential investment. She has gathered the following condensed income statements and selected information from the balance sheet for each division. The company's minimum required rate of return is 10%, while its weighted average cost of capital is 8%. Its effective tax rate is 25% How much would each division need to generate in new operating income in the fourth quarter to reach the company's desired ROl of 13% at year-end, assuming each division uses its available $53,000 to purchase a new investment? Assume it is a $53,000 nondepreciable asset but still included in operating assetsStep by Step Solution
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