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The Tandem Division of the Great Adventures Cycles Company Had

Question 36

Multiple Choice

The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) . Management's target rate of return is 10% and the weighted average cost of capital is 8%.Its effective tax rate is 40%. What is the Tandem division's Economic Value Added (EVA) ? A) $136,000 B) $152,000 C) $280,000 D) $288,000
Management's target rate of return is 10% and the weighted average cost of capital is 8%.Its effective tax rate is 40%.
What is the Tandem division's Economic Value Added (EVA) ?


A) $136,000
B) $152,000
C) $280,000
D) $288,000

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