Economic Value Added and the Balanced Scorecard Spectrum Book Company has two divisions-the Brick and Mortar division sells books through more than 100 bookstores throughout the United States; the Internet division was formed 16 months ago and sells books via the Internet. Data for the past year are:

Required
a. Evaluate the two divisions in terms of Economic Value Added (EVA).
b. Explain why it might be better to evaluate the Internet division in terms of a balanced scorecard rather than just using EVA.
c. Consider the customer and internal process dimensions of the balanced scorecard. Suggest two measures for each dimension that would be appropriate for the Brick and Mortar division and two measures for each dimension that would be appropriate for the Internet division.

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Total assets Noninterest-bearing current liabilities Interest expense Net income (loss) Tax rate Cost of capital Brick and Mortar Internet Division Division $160,000,000 $15,300,000 7,000,000 2,500,000 1,250,000 413,000 $ 27,500,000 (1,100,000) 40% -0- 13% 15%