Correll Company Has Two Divisions, a and B -Refer to the Figure

question 33

Multiple Choice

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

• A)$44,000
• B)$116,000
• C)$144,000
• D)$216,000

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Definitions:

Comparative Ad

A marketing strategy that compares one product directly to another to highlight the advantages.

Brand's Strengths

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