Leon Company uses equity spread in evaluating managerial performance. At year end, the total shareholders’ equity was P10,000,000. During the year, the shareholders’ equity has a net increase of P2,000,000. Net income was P3,000,000. The cost of equity was 8% and the WACC was 10%. What is the equity spread? a. 800,000 b. Answer not given c. 1,840,000 d. 2,026,667 e. 640,000

Essentials Of Investments
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Leon Company uses equity spread in evaluating managerial performance. At year end, the total shareholders’ equity was P10,000,000. During the year, the shareholders’ equity has a net increase of P2,000,000. Net income was P3,000,000. The cost of equity was 8% and the WACC was 10%. What is the equity spread?

a. 800,000
b. Answer not given
c. 1,840,000
d. 2,026,667
e. 640,000
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