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Author Question: The following data relates to the Miracle Corporation and its Toy Division.Toy Division sales ... (Read 71 times)

kshipps

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The following data relates to the Miracle Corporation and its Toy Division.

Toy Division sales $8,000,000
Toy Division operating income $480,000
Toy Division total assets $2,000,000
Toy Division current liabilities $600,000
Corporate target rate of return14%
Corporate weighted average cost of capital10%
Corporate effective tax rate30%


What is the Toy Division's Economic Value Added (EVA)?
◦ $336,000
◦ $196,000
◦ $140,000
◦ $200,000


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Marked as best answer by kshipps on Jan 5, 2020

brittanywood

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kshipps

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Reply 2 on: Jan 5, 2020
Great answer, keep it coming :)


Alyson.hiatt@yahoo.com

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Reply 3 on: Yesterday
Wow, this really help

 

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