Consider the following data for the firms Acme and Apex: p-696 Cash dividend $ 80,000 Purchase of

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Consider the following data for the firms Acme and Apex: p-696 Cash dividend $ 80,000 Purchase of bus $ 33,000 Interest paid on debt $ 25,000 Sales of old equipment $ 72,000 Repurchase of stock $ 55,000 Cash payments to suppliers $ 95,000 Cash collections from customers $300,000

a. Which firm has the higher economic value added?

b. Which firm has the higher economic value added per dollar of invested capital?

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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