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Business, 12.08.2020 15:01 hollie62

Assume Division 1 of the XYZ Company had the following results last year. Sales $5,000,000 Operating income 1,000,000 Total assets (average) 10,000,000 Current liabilities 500,000 Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%. What is the division's economic value added?

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Assume Division 1 of the XYZ Company had the following results last year. Sales $5,000,000 Operating...
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