10

Here are data on two firms: Acme Apex Equity ($ million) 100 450 Debt ($ million) 50 150 ROC Cost of Capital (%) (%) 17 9 15 10 a-1. Calculate the higher economic value added? (Enter your answers in millions.) Acme Apex Higher economic value added $ million $ million a-2. Which firm has the higher economic value added? Acme Apex b-1. Calculate the higher economic value added per dollar of invested capital? (Do not round interme Acme $ Apex Higher economic value added $ b-2. Which has higher economic value added per dollar of invested capital? Acme Apex