Cornwall Company Has Two Divisions, a and B What Is EVA for Division A?
A)$40,000
B)$28,000
C)$15,000
D)$25,000

question 93

Multiple Choice

Cornwall Company has two divisions, A and B. Information for each division is as follows: $\begin{array}{lrr}&A&B\\\text { Net earnings for division } & \$ 40,000 & \$ 260,000 \\\text { Asset base for division } & \$ 100,000 & \$ 1,200,000 \\\text { Target rate of return } & 15 \% & 18 \% \\\text { Margin } & 10 \% & 20 \% \\\text { Weighted average cost of capital } & 12 \% & 12 \%\end{array}$ What is EVA for Division A?

• A)$40,000
• B)$28,000
• C)$15,000
• D)$25,000

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Definitions:

Rehearsing

involves repetitively practicing material to be remembered, a strategy to transfer information from short-term to long-term memory.

Sensory Memory

The shortest-term element of memory, allowing the ability to retain impressions of sensory information after the original stimuli have ended, acting as a buffer for stimuli received through the senses.

Acoustic Coding

A process by which information is remembered and stored in the brain as a sequence of sounds, often used in studies of short-term and working memory.

Long-term Memory

The phase or type of memory responsible for the storage of information over an extended period, ranging from a few days to decades.