Here are data on two firms Equity ($ million) Debt ($ million) ROC ( ) Cost of Capital ( ) Acme 150 110 19 9 Apex 500 200 17 10 Required a 1 Calculate the economic value added (Do not round intermediate calculations Enter your answers in millions) Acme Apex Economic value added million million a 2 Which firm has the higher economic value added Acme Apex b 1 Calculate the economic value added per dollar of invested capital (Do not round intermediate calculations Round your answers to 2 decimal places ) Acme Apex Economic value added million million b 2 Which has higher economic value added per dollar of invested capital Acme Apex

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Question: Here are data on two firms: Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%) Acme 150 110 19 9 Apex 500

Here are data on two firms:

	Equity ($ million)	Debt ($ million)	ROC (%)	Cost of Capital (%)
Acme	150	110	19	9
Apex	500	200	17	10

Required:

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

	Acme	Apex
Economic value added	_____ million	_____ million

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

Acme
Apex

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

	Acme	Apex
Economic value added	_____ million	_____ million

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

Acme
Apex

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