In 2020, Evans Corporation Had an Operating Profit of $750,000

question 91

Multiple Choice

In 2020, Evans Corporation had an operating profit of $750,000 and a residual income of $300,000. If Evans' cost of capital is 15%, what is the amount of the invested capital?

• A) $5,000,000.
• B) $3,000,000.
• C) $2,000,000.
• D) $1,250,000.

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Definitions:

Clarify

To make a statement or situation less confused and more comprehensible.

Leader Stance

The attitudes, behaviors, and strategies adopted by someone in a leadership position to guide and influence a group.

Freely Communicate

The ability to exchange information, ideas, and feelings without restrictions or limitations.

Understanding

The ability to comprehend, make sense of, or grasp the meaning of something.