Economic value added of us division


Bella Vista's U.S. Division reported sales of $300,000; before-tax operating income of $25,500; and net assets of $140,000. Its tax rate is 20% and its weighted average cost of capital is 10%. The economic value added of the U.S. Division is:

a. $11,500

b. $6,400

c. 18.2%

d. 14.6%

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Accounting Basics: Economic value added of us division
Reference No:- TGS046711

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