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[i]. (10 points) Here are data on three firms: Firm Equity ($ million) Debt ($ million) ROC (%) Cost of Capital (%) A 80 50

[i]. (10 points)

Here are data on three firms:

Firm

Equity ($ million)

Debt

($ million)

ROC

(%)

Cost of Capital

(%)

A

80

50

15

10

B

300

150

15

11

C

200

200

15

12

a. Which firm has the highest economic value added?

b. Which firm has highest economic value added per dollar of invested capital?

[i]

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