The firm has two divisions divisions a and b each with the


The firm has two divisions, divisions A and B, each with the same level of risk. The firm’s after-tax cost of capital is 16%. The firm’s EBIT was $900,000 last year. The B division had an EBIT of $300,000. The tax rate is 30%. What was the A division’s NOPAT last year?

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Financial Management: The firm has two divisions divisions a and b each with the
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