Question: 1. Amazon Corporation, whose tax rate is 30% has two sources of funds: long-term debt and equity capital. Amazon has two operating divisions, the Blue
1. Amazon Corporation, whose tax rate is 30% has two sources of funds: long-term debt and equity capital. Amazon has two operating divisions, the Blue division and the gold division, with the following financial measures for the current year:
| Total Assets | Current Liabilities | Operating Income | |
| Blue | 9,500,000 | 3,100,000 | 1,059,000 |
| Gold | 11,000,000 | 2,200,000 | 1,200,000 |
A. Compute each divisions Economic Value Added:
| Division | Economic Value Added |
2.What special problems arise when evaluating performance in multinational companies?
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