Question: please show the calculation for me QUESTION 11 Question Three Reke Led is a fast-food chain operating throughout the northwest coast of Western Australia. The

please show the calculation for me

please show the calculation for me QUESTION 11
QUESTION 11 Question Three Reke Led is a fast-food chain operating throughout the northwest coast of Western Australia. The company has two sources of long-term capital: debt and equity, The co payments on the debt, taking into account the fact that the interest payments are tax deductible. The cost of Reke's equity capital is the investment opportunity rate of of similar risk to that of investing in Reke Ltd. The interest rate on Reke's $80 million long term debt is 9%, and the company's tax rate is 30%. The cost of Reke's equity Reke's equity is $120 million. Reke Led consists of two divisions. The properties division and the food service division. The divisions' total assets, current liabilities, and before-tax operating income Division Total Assets Current Liabilities Before-tax operating income Properties $145,000,000 $3,000,000 $29,000,000 Food Services 64,000,000 6,000,000 15,000,000 Required: Calculate economic value added for each of Reke Ltd's divisions. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). v

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