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Use the following information to evaluate the performance of the Best Division. Sales $7,500,000 Interest expense $600,000 Net income $1,000,000 Total assets $6,000,000 Noninterest-bearing current
Use the following information to evaluate the performance of the Best Division. Sales $7,500,000 Interest expense $600,000 Net income $1,000,000 Total assets $6,000,000 Noninterest-bearing current liabilities $500,000 Cost of capital 15% Tax rate 30% Calculate the following items. (3 points each)
a. NOPAT
b. Invested capital
c. Return on investment
e. Residual income
f. Profit margin using NOPAT
g. Evaluate Best Division's performance.
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