Question
The following information is for Maddox Division: Weighted average cost of capital 9% After-tax operating income $100,000 Total assets $900,000 Current liabilities $ 50,000 What
The following information is for Maddox Division:
| Weighted average cost of capital | 9% |
| After-tax operating income | $100,000 |
| Total assets | $900,000 |
| Current liabilities | $ 50,000 |
What is the division's economic value added (EVA)?
| $94,500 | ||
| $19,000 | ||
| $ 9,000 | ||
| $23,500 |
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arena
6th Edition
0912503564, 9780912503561
