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 A?
A)$15,000
B)$25,000
C)$28,000
D)$40,000

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The Answer of 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 A?
A)$15,000
B)$25,000
C)$28,000
D)$40,000

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