Diamond Division had the following information:
$$\begin{array} { l r }
\text { Current Liabilities } & \$ 1,800,000 \
\text { Investment base } & 17,000,000 \
\text { Net operating income before } & \
\text { taxes } &2,000,000 \
\text { Tax rate } & 35 \% \
\text { Cost of capital } & 7 \%
\end{array}$$ Calculate Diamond Division's economic value added.

Question

Diamond Division had the following information:
 $$\begin{array} { l r } 
\text { Current Liabilities } & \$ 1,800,000 \
\text { Investment base } & 17,000,000 \
\text { Net operating income before } &  \
\text { taxes } &2,000,000  \
\text { Tax rate } & 35 \% \
\text { Cost of capital } & 7 \%
\end{array}$$ Calculate Diamond Division's economic value added.

Quizplus · Accepted Answer

The Answer of Diamond Division had the following information:
 $$\begin{array} { l r } 
\text { Current Liabilities } & \$ 1,800,000 \
\text { Investment base } & 17,000,000 \
\text { Net operating income before } &  \
\text { taxes } &2,000,000  \
\text { Tax rate } & 35 \% \
\text { Cost of capital } & 7 \%
\end{array}$$ Calculate Diamond Division's economic value added.

Diamond Division Had the Following Information Calculate Diamond Division's Economic Value Added