The Following Results for the Current Year Are for the Calvin

question 21

Essay

The following results for the current year are for the Calvin Division of Stinson Enterprises: Average operating assets are £500,000. The firm's minimum required rate of return is 10 per cent, the weighted average cost of capital is 8 per cent, and the tax rate is 30 per cent.
Required:
a.
Calculate profit margin for the division.
b.
Calculate asset turnover for the division.
c.
Calculate return on investment (ROI) for the division.
d.
Calculate economic value added (EVA) for the division.

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Definitions:

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