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:

Acme Apex Equity (S million) 200 410 Debt ROC Cost of Capital

a. Calculate the higher economic value added?

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

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

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