Exercise 13-28 Economic Value Added (EVA) (LO 13-2) Golden Gate Construction Assoclates, a real estate developer and bulding contractor In San Franclsco, has two sources of long-term capital: debt and equity. The cost to Golden Gate of issulng debt is the after-tax cost of the Interest payments on the debt, taking Into account the fact that the Interest payments are tax deductible. The cost of Golden Gate's equity capital Is the Investment opportunity rate of Golden Gate's Investors, that is, the rate they could earn on Investments of similar risk to that of Investing In Golden Gate Construction Assoclates. The Interest rate on Golden Gate's $63 million of long-term debt is 6 percent, and the company's tax rate Is 40 percent. The cost of Golden Gate's equity capital is 15 percent. Moreover, the market value (and book value) of Golden Gate's equity is $86 milllon. The company has two divislons: the real estate division and the construction division. The divislons' total assets, current liabilties, and before-tax operating Income for the most recent year are as follows: Before-Tax Operating Income Current Division Real estate $1ee,80e,88 $5,78e,e8 $28,ee,8e8 Construction Total AssetsLiabilities 68,30e,988 3,18e,8e8 18,28e,988 Required Calculate the economic value added (EVA) for each of Golden Gate Construction Assoclates' divislons. (Round your welghted- average cost of capital to 3 declmal places (1.e. .123). Enter your answers In mllilons rounded to 3 declmal places (l.e. 1,234,000 should be entered as 1.234).) Economic value added (in millions) Division Real Estate Construction