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?
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?
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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Transcribed Image Text:Jazz
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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 ()
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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