Question: Here are data on two firms: Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%) Acme 120 80 17 11 Apex 400

Here are data on two firms:

	Equity ($ million)		Debt ($ million)		ROC (%)		Cost of Capital (%)
Acme		120		80		17		11
Apex		400		200		13		12

a-1. Calculate the economic value added? (Do not round intermediate calculations. Enter your answers in millions)

Here are data on two firms: Equity ($ million) Debt ($ million)

a-2. Which firm has the higher economic value added?

multiple choice 1

Apex has higher economic value added
Acme has higher economic value added

b-1. Calculate the economic value added per dollar of invested capital? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

ROC (%) Cost of Capital (%) Acme 120 80 17 11 Apex

b-2. Which has higher economic value added per dollar of invested capital?

Acme has higher economic value added per dollar of invested capital
Apex has higher economic value added per dollar of invested capital

Acme Apex Economic value added million million Acme Apex Economic value added million million

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