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The Truman Division of Wordsworth, Inc. reported the following results. Sales 40,000,000 Expenses 30,000,000 Average Assets 80,000,000 Compute the following: 1) Margin 2) Turnover 3)

The Truman Division of Wordsworth, Inc. reported the following results.
Sales 40,000,000
Expenses 30,000,000
Average Assets 80,000,000
Compute the following:
1) Margin
2) Turnover
3) ROI
Truman's management requires a minimum acceptable rate of return of: 10%
4) Calculate the residual income for the Truman Division.
Wordsworth evaluates its divisions based on economic value added.
Wordsworth's tax rate is: 22.50%
Wordsworth's cost of capital is: 8.25%
5) Calculate the EVA for the Truman Division.

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