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Brock University *
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3413
Subject
Finance
Date
Nov 24, 2024
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1
Uploaded by MateResolve7874
Sleepy
Owl
Company
allows
its
divisions
to
operate
as
autonomous
units.
Their
results
for
the
current
year
were
as
follows:
Required:
a.
b.
c.
d
Pillow
Blanket
Bed
Sheet
Revenues
$2,250,000
|
$500,000
|
$4.,800,000
Current
assets
800,000
152,500
1,435,000
Capital
assets
1,000,000
|
400,000
1,750,000
Current
liabilities
350,000
75,000
540,000
Net
operating
income
220,000
60,000
480,000
After-tax
income
143,000
39,000
312,000
Weighted
average
cost
of
capital
|
8.5%
8.5%
8.5%
Return
on
sales
Return
on
investment
based
on
total
assets
employed
Economic
value
added
Residual
income
based
on
net
operating
income
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