Here are data on two firms:

	Equity ($ million)	Debt ($ million)	ROC (%)	Cost of Capital (%)
Acme	150	110	19	9
Apex	500	200	17	10

Required:

a-1. Calculate the economic value added? (Do not round intermediate calculations. Enter your answers in millions)

	Acme	Apex
Economic value added	_____ million	_____ million

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

• Acme

• Apex

b-1. Calculate the economic value added per dollar of invested capital? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Acme	Apex
Economic value added	_____ million	_____ million

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

• Acme

• Apex