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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