Alpha Corporation has three major divisions. Current results for the three divisions are summarized below. WACC |Таx rate 12% 35% Division A Div is io n B Division C Total S a les $43,000 $ 10,000 $22,000 $75,000 Operating income $7,692 $2,4 62 $ 4,615 $14,769 Inve sted capital $2 5,000 $20,000 $10,000 $ 55,000 Complete the worksheet on the following page. Which divisions are value creators? Which are value destroyers?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
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Jazz
4G
G
Zong CMPak )D
l 56% D 23:16
Exercise: Alpha Corporation
Alpha Corporation has three major divisions. Current
results for the three divisions are summarized below.
WACC
12%
Tax rate
35%
D ivision A Div is io n B Divisio n C
Total
S a les
$43,000
$10,000
$22,000
$75,000
O perating income
$7,692
$2,4 62
$4,615
$ 14,769
Inve sted capital
$2 5,000
$20,000
$10,000
$ 55,000
• Complete the worksheet on the following page. Which
divisions are value creators? Which are value
destroyers?
Transcribed Image Text:Jazz 4G G Zong CMPak )D l 56% D 23:16 Exercise: Alpha Corporation Alpha Corporation has three major divisions. Current results for the three divisions are summarized below. WACC 12% Tax rate 35% D ivision A Div is io n B Divisio n C Total S a les $43,000 $10,000 $22,000 $75,000 O perating income $7,692 $2,4 62 $4,615 $ 14,769 Inve sted capital $2 5,000 $20,000 $10,000 $ 55,000 • Complete the worksheet on the following page. Which divisions are value creators? Which are value destroyers?
Jazz
4G
G
Zong CMPAK ()
l 56% D 23:16
Exercise: Alpha Corporation
Division A
Division B
Division C
Total
OI Margin
NOPAT
ROIC
Economic
Profits
Transcribed Image Text:Jazz 4G G Zong CMPAK () l 56% D 23:16 Exercise: Alpha Corporation Division A Division B Division C Total OI Margin NOPAT ROIC Economic Profits
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