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shayanbk shayanbk
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3 months ago
Marshall Industries operates as an investment center. Buddy Hall, the region's division manager, has set a required minimum rate of return of 15%. Marshall's total assets are $350,000, current liabilities are $150,000, and operating income is $60,000.  The company's weighted-average cost of capital is 18% and its tax rate is 28%.

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Calculate Marshall's EVA. Show your work.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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shanej399shanej399
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More solutions for this book are available here
Step 1 — $60,000 × (1 - 28%) = $43,200
Step 2 — $350,000 - $150,000 = $200,000
Step 3 — 18%
Step 4 — $43,200 - ($200,000 × 18%) = $7,200
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shayanbk Author
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3 months ago
Smart ... Thanks!
elizabetheldrid
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brina10
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Thanks for your help!!
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