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(The following information applies to all question in this quiz). Consider two companies, Stars and Stripes. Last year, Stars produced a NOPAT of $85 million
(The following information applies to all question in this quiz). Consider two companies, Stars and Stripes. Last year, Stars produced a NOPAT of $85 million with $500 million of invested capital, on which providers require a return of 12%. Stripes produced a NOPAT of $90 million with $900 million of invested capital, on which providers require a 15% return.
Last year, Stars capital charge was
a) $120 million
b) $80 million
c) $40 million
d) $60 million
e) $100 million
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