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The Following Information Is Reported for the Current Year for North

Question 40

Multiple Choice

The following information is reported for the current year for North Atlantic Division of XT Enterprises: Sales
Interest expense
Net income
Total assets
Noninterest-bearing current liabilities
Cost of capital
Required rate of return
Tax rate
$3,800,000$250,000$500,000$5,000,000$400,0008%14%30%\begin{array} { r } \$ 3,800,000 \\\$ 250,000 \\\$ 500,000 \\\$ 5,000,000 \\\$ 400,000 \\8 \% \\14 \% \\30 \%\end{array} How much is the division's invested capital?


A) $5,000,000
B) $5,400,000
C) $5,500,000
D) $4,600,000

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