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Assume Division 1 of the XYZ Company Had the Following

Question 15

Multiple Choice

Assume division 1 of the XYZ Company had the following results last year (in thousands) . Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%.
Assume division 1 of the XYZ Company had the following results last year (in thousands) . 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? A) $60,000 B) $130,000 C) $270,000 D) $430,000
- What is the division's economic value added?


A) $60,000
B) $130,000
C) $270,000
D) $430,000

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