6. (a) The following information is given for 3 companies that are identical except for their capital structure Orange 100,000 0.8 6,100 16% 26% 25,000 8,970 Grape Total invested capital Debt/assets ratio Shares outstanding Pre tax cost of debt Cost of equity Operating Income (EBIT) Net Income Apple ,00,00000,000 0.2 10,000 15% 20% 25,000 4,950 0.5 8,300 13% 2 25,000 12,350 The tax rate is uniform 35% in all cases (i) Calculate the Weighted average cost of capital for each company (ii) Calculate the Economic Valued Added (EVA) for each company (ii) Recommend on the basis of EVA, which company would be considered for best investment by giving reasons