Question
Here are data on two firms: Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%) Acme 260 90 16 10 Apex 300
Here are data on two firms: Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%) Acme 260 90 16 10 Apex 300 200 14 11 a-1. Calculate the higher economic value added? (Do not round intermediate calculations. Enter your answers in millions) Acme Apex Higher economic value added $ million $ million a-2. Which firm has the higher economic value added? Apex has higher economic value added Acme has higher economic value added b-1. Calculate the higher economic value added per dollar of invested capital? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Acme Apex Higher economic value added $ $ b-2. Which has higher economic value added per dollar of invested capital? Acme has higher economic value added per dollar of invested capital Apex has higher economic value added per dollar of invested capital
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