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What is the economic value added by pacific division

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Reference no: EM132544177

Question - The following information relates to the Pacific Ocean Enterprises: Interest rate on debt capital: 8% Cost of equity capital: 12% Market value of equity capital: P80 million Market value of debt capital: P50 million Total cash: P10 million Income tax rate: 30% Income before tax: 19.4 million. What is the economic value added by Pacific Division?

A. P180,000

B. P1,180,000

C. P3,100,000

D. Some other answer

Reference no: EM132544177

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