Question
Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division Net
Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results:
| Adams Division | Jefferson Division | |||
| Net (after-tax) income | $623,150 | $374,850 | ||
| Total capital employed | 4,720,000 | 3,510,000 | ||
Washington's actual cost of capital was 12%.
Required:
1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. $
2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. $
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Frank Woods Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
14th Edition
1292209178, 9781292209173
