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(Economic value added) Drew Concrete uses Economic Value Added as a financial performance measure. Drew has $200 million in assets, and the firm has financed
(Economic value added) Drew Concrete uses Economic Value Added as a financial performance measure. Drew has $200 million in assets, and the firm has financed its assets with 50% equity and 50% debt with an interest rate of 7%. The firm's opportunity cost on its funds is 14%, while the operating return on the firm's assets is 12% a. What is the Economic Value Added created or destroyed by Drew Concrete? b. What does Economic Value Added measure
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