Civic Auto Company operates a New Car Division (that sells high performance sports cars) and a Parts Division (that sells performance improvement parts for family cars). Some division financial measures for the year are as follows: (Click the icon to view the data.) Required Data table lls P Division New Car Performance Parts Division Total assets $ Current liabilities $ SA S 33,000,000 $ 28,500,000 6,900,000 $ 8,100,000 Operating income $ 2,475,000 $ 2,565,000 Required rate of return 11% 11% rend lcula 4. Civic Auto Company, whose tax rate is 35%, has two sources of funds: long-term debt with a market value of $16,000,000 at an interest rate of 10% and equity capital with a market value of $13,000,000 and a cost of equity of 13%. Applying the same weighted-average cost of capital (WACC) to each division, calculate economic value added (EVA) for each division. 5. Use your preceding calculations to comment on the relative performance of each division. Requirement 4. Civic Auto Company, whose tax rate is 35%, has two sources of funds: long-term debt with a market value of $16,000,000 at an interest rate of 10% and equity capital with a market value of $13,000,000 and a cost of equity of 13%. Applying the same weighted-average cost of capital (WACC) to each division, calculate economic value added (EVA) for each division. Begin by determining the formula to calculate WACC. ' X )+( X = WACC The company's WACC is + (Enter the amount as a decimal. Round the WACC to five decimal places in the format X.XXXXX.) Determine the formula to calculate the EVA of each Division. Then, enter the amounts for the New Car Division and the Performance Parts Division and calculate the EVA for each. (Enter the WACC to five decimal places in the format X.XXXXX. Round your intermediate calculations to the nearest whole number. Use parentheses or a minus sign when entering a negative EVA. Abbreviation used: inc. = income.) Determine the formula to calculate the EVA of each Division. Then, enter the amounts for the New Car Division and the Performance Parts Division and calculate the EVA for each. (Enter the WACC to five decimal places in the format X.XXXXX. Round your intermediate calculations to the nearest whole number. Use parentheses or a minus sign when entering a negative EVA. Abbreviation used: inc. income.) New Car Division: Performance Parts Division: x ( x ( x( division }) = EVA Requirement 5. Use your preceding calculations to comment on the relative performance of each division. Both the residual income and the EVA calculations indicate that the The Division has a higher residual income. The EVA for Division is performing nominally better than the other division. Vindicates that, on an after-tax basis, the division(s) is (are) value