Marcia Consumer Products Has Several Divisions, Including the Education Division

question 141

Multiple Choice

Marcia Consumer Products has several divisions, including the Education Division and the Recreation Division. Data on the two divisions are shown here:
$\begin{array}{|l|r|r|} \hline & \text { Education Division } & \text { Recreation Division } \\\hline \text { Current ROI } & 9.2 \% & 10.0 \% \\\hline \text { Current WACC } & 8.0 \% & 8.0 \% \\\hline \text { Operating income } & \$ 110,000 & \$ 200,000 \\\hline \text { Effective tax rate } & 20.0 \% & 20.0 \% \\\hline \text { Average total assets } & \$ 1,200,00 & \$ 2,000,000 \\\hline \text { Current liabilities } & \$ 30,000 & \$ 30,000\\\hline \end{array}$
How much is the EVA for the Education Division?

• A) $12,890
• B) $4,600
• C) ($5,600)
• D) ($12,750)

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Definitions:

Endotracheal Tube

A flexible tube inserted through the mouth into the trachea to maintain an open airway.

Suctioning

The process of removing mucus and other bodily fluids from a patient's airway to prevent or relieve obstruction and maintain adequate ventilation.

Trendelenburg Position

A medical position where the patient is laid flat on their back with the legs elevated higher than the head, often used to facilitate venous return in certain conditions.

Infection Susceptibility

The increased likelihood or tendency of an individual to contract infections due to various factors such as immune deficiency.