Question: The weighted-average cost of capital for Forstone Corporation is 10 percent. Last year one of the divisions of Forstone generated an EVA of $4,000,000, while

The weighted-average cost of capital for Forstone Corporation is 10 percent. Last year one of the divisions of Forstone generated an EVA of $4,000,000, while the division’s assets less its current liabilities were $30,000,000. How much after-tax operating income did the division generate?

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