Solved

Figure 19-4
Beta Division Had the Following Information -Refer to Figure 19-4

Question 7

Multiple Choice

Figure 19-4
Beta Division had the following information:  Asset base in Beta Division £400,000 Net income in Beta Division £50,000 Weighted average cost of capital 12% Target ROI 15% Margin for Beta Division 20%\begin{array}{lr}\text { Asset base in Beta Division } & £ 400,000 \\\text { Net income in Beta Division } & £ 50,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target ROI } & 15 \% \\\text { Margin for Beta Division } & 20 \%\end{array}
-Refer to Figure 19-4. What is EVA for Beta Division?


A) £60,000
B) £48,000
C) £7,500
D) £2,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions