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Here are data on two firms: Equity ( $ million ) Debt ( $ million ) ROC ( % ) Cost of Capital ( %
Here are data on two firms:
Equity
$ million Debt
$ million ROC
Cost of Capital
Acme
Apex
Required:
a Calculate the economic value added? Do not round intermediate calculations. Enter your answers in millions
a Which firm has the higher economic value added?
multiple choice
Acme
Apex
b Calculate the economic value added per dollar of invested capital? Do not round intermediate calculations. Round your answers to decimal places.
b Which has higher economic value added per dollar of invested capital?
multiple choice
Acme
Apex
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