NUBD Company has two divisions, X and Y. Information for each division is as follows: P40,000 P100,000 15% 10% 15% P270,000 P1,200,000 18% 20% 15% Net earnings after tax for division Asset base for division Target rate of return Margin Weighted average cost of capital

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is EVA for Division Y?

NUBD Company has two divisions, X and Y. Information for each division is as
follows:
Net earnings after tax for division
Asset base for division
Target rate of return
Margin
Weighted average cost of capital
P40,000
P100,000
15%
10%
15%
P270,000
P1,200,000
18%
20%
15%
Transcribed Image Text:NUBD Company has two divisions, X and Y. Information for each division is as follows: Net earnings after tax for division Asset base for division Target rate of return Margin Weighted average cost of capital P40,000 P100,000 15% 10% 15% P270,000 P1,200,000 18% 20% 15%
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