Question: Here are data on two firms: a. Calculate the higher economic value added? b. Calculate the higher economic value added per dollar of invested capital?

Here are data on two firms:

Equity ($ million) Acme 200 Apex 410 Debt ($ million) 150 190

a. Calculate the higher economic value added?

b. Calculate the higher economic value added per dollar of invested capital?

Equity ($ million) Acme 200 Apex 410 Debt ($ million) 150 190 ROC (%) 18 16 Cost of Capital (%) 12 13

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