Determining the economic value of us division

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Bella Vista’s U.S. Division reported sales of $300,000; before-tax operating income of $25,500; and net assets of $140,000. Its tax rate is 20% and its weighted average cost of capital is 10%. The economic value added of the U.S. Division is

a. $11,500
b. $6,400
c.18.2%
d.14.6%

Reference no: EM139789

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