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Leesum Company has two divisions: the Leone Division and the Letwo Division. The following information pertains to last year's results: Leone Division Letwo Division
Leesum Company has two divisions: the Leone Division and the Letwo Division. The following information pertains to last year's results: Leone Division Letwo Division $623,150 4,800,000 Net (after-tax) income Total capital employed Leesum's actual cost of capital was 12%. Required: $359,100 3,672,500 1. Calculate the EVA for the Leone Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 2. Calculate the EVA for the Letwo Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 3. Conceptual Connection: Is each division creating or destroying wealth? Leone Division Letwo Division
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