Question: Exercise (LO 2) Refer to the data in the preceding exercise for Golden Gate Construction Associates. The company has two divisions: the real estate division

Exercise (LO 2) Refer to the data in the preceding exercise for Golden Gate Construction Associates. The company has two divisions: the real estate division and the construction division. The divisions' total assets, current liabilities, and before-tax operating income for the most recent year are as follows: Current Division Total Assets Liabilities Real estate . $100,000,000 $6,000,000 Construction .. 60,000,000 4,000,000 Required: Calculate the economic value added (EVA) for each of Golden Gate Construction Associates' divisions. (You will need to use the weighted-average cost of capital, which was computed in the preceding exercise.) Before-Tax Operating Income $20,000,000 18,000,000

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