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Use the information below to answer the following question(s) :
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 40%.
What is the Tandem division's Economic Value Added (EVA) ?
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