XYZ Corporation, whose tax rate is 30%, has two operating divisions, the Mandauedivision and the Balamban division, with the following financial data for the currentyear:Mandaue DivisionBalamban DivisionTotal AssetsP475,000,000P550,000,000Current LiabilitiesP140,000,000P110,000,000Operating IncomeP52,750,000P60,000,000The company has a weighted-average cost of capital of 9.12%.What is Economic Value Added (EVA) for the Mandaue Division?P1,872,000P22,198,000P6,373,000D6 395 000

The net income is the net profit of the company earned during the period. The net income includes…

XYZ Corporation, whose tax rate is 30%, has two operating divisions, the Mandaue division and the Balamban division, with the following financial data for the current year: Total Assets Current Liabilities Mandaue Division Balamban Division P475,000,000 P550,000,000 P140,000,000 P110,000,000 Operating Income P52,750,000 P60,000,000 The company has a weighted-average cost of capital of 9.12%. What is Economic Value Added (EVA) for the Mandaue Division? P1,872,000

XYZ Corporation, whose tax rate is 30%, has two operating divisions, the Mandaue division and the Balamban division, with the following financial data for the current year: Total Assets Current Liabilities Mandaue Division Balamban Division P475,000,000 P550,000,000 P140,000,000 P110,000,000 Operating Income P52,750,000 P60,000,000 The company has a weighted-average cost of capital of 9.12%. What is Economic Value Added (EVA) for the Mandaue Division? P1,872,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 22P

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