The Following Information Is Reported for the Current Year for North

question 122

Multiple Choice

The following information is reported for the current year for North Atlantic Division of XT Enterprises: $$\begin{array} { l r } \text { Sales } & \$ 3,800,000 \\\text { Interest expense } & \$ 250,000 \\\text { Net income } & \$ 500,000 \\\text { Total assets } & \$ 5,000,000 \\\text { Noninterest-bearing current liabilities } & \$ 400,000 \\\text { Cost of capital } & 8 \% \\\text { Required rate of return } & 14 \% \\\text { Tax rate } & 30 \%\end{array}$$ How much is the division's NOPAT?

• A)$575,000
• B)$500,000
• C)$750,000
• D)$675,000

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Definitions:

Reifies

Converts abstract concepts into concrete entities.

Industrial Production

The process of manufacturing goods and materials in factories and plants, typically on a large scale.

Alienated

Feeling isolated and separated from a group or activity to which one should belong or in which one should be involved, often discussed in the context of work and labor.

Produce

To create or bring forth goods and services through various processes of production and labor.