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Compute the company residual income

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Reference no: EM133058157

Question - Consider the following information:

Investment center's profit before interest but after tax - P45,000 Investment center's total assets - P800,000

Investment center's total current liabilities - P150,000 Weighted-average cost of capital - 6.5%

Interest expense - P30,000 Tax rate - 25%

Minimum required ROI - 5.0%

Required -

1. Compute the company's EVA?

2. Compute the company's residual income?

Reference no: EM133058157

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