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Author Question: Springfield Corporation, whose tax rate is 30%, has two sources of funds: long-term debt with a ... (Read 62 times)

cabate

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on: Mar 6, 2021

Question 1

Return on investment can be increased by ________.
◦ increasing current assets
◦ increasing return on sales
◦ decreasing revenues
◦ increasing the debt portion of the capital

Question 2

Springfield Corporation, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $8,400,000 and an interest rate of 8%, and equity capital with a market value of $14,000,000 and a cost of equity of 13%. Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

​Total AssetsCurrent LiabilitiesOperating Income
Blue Div.$9,500,000$3,100,000$1,059,000
Gold Div.$11,000,000$2,200,000 $1,200,000
What is Economic Value Added (EVA®) for the Blue Division? (Round intermediary calculations to four decimal places.)
◦ -$86,580
◦ $86,580
◦ $404,280
◦ -$230,550
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by cabate on Mar 6, 2021

miss.ashley

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cabate

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

mochi09

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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