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Sunday, September 6, 2015

Mountain Mist Inc.’s cost of capital is 11 percent

Mountain Mist Inc.’s cost of capital is 11 percent. In 2010, one of the firm’s divisions generated an EVA of $1,130,000. The fair market value of the capital investment in that division was $29,500,000. How much after-tax income was generated by the division in 2010?


Click here for the solution: Mountain Mist Inc.’s cost of capital is 11 percent