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Consider the following data for the firms Acme and Apex: Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%) Acme 280 140

Consider the following data for the firms Acme and Apex:

Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%)
Acme 280 140 17% 9%
Apex 1,400 467 15% 10%

Required:

a-1. Calculate the economic value added for Acme and Apex.

a-2. Which firm has the higher economic value added?

b-1. Calculate the economic value added per dollar of invested capital for Acme and Apex.

b-2. Which firm has the higher economic value added per dollar of invested capital?

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Calculate the economic value added for Acme and Apex. Note: Enter your answers in millions rounded to 2 decimal places. Calculate the economic value added per dollar of invested capital for Acme and Apex. Note: Round your answers to 2 decimal places. Calculate the economic value added for Acme and Apex. Note: Enter your answers in millions rounded to 2 decimal places. Calculate the economic value added per dollar of invested capital for Acme and Apex. Note: Round your answers to 2 decimal places

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