Question
The following results for the year pertain to the Russell Division of TADD Corporation. Revenues $ 500,000 Variable expenses 250,000 Fixed expenses 100,000 After tax
The following results for the year pertain to the Russell Division of TADD Corporation.
Revenues | $ 500,000 |
Variable expenses | 250,000 |
Fixed expenses | 100,000 |
After tax operating profit | 130,000 |
Total capital employed is $ 800,000. The firm’s cost of capital is 10%.
Requirement 1: what is Russell Division EVA?
Requirement 2: What is the ROI for the Russsell Division?
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Requirement 1 EVA Economic Value Added is a measure of a firms financial perf...
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Federal Taxation 2016 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
29th Edition
134104374, 978-0134104379
