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Required information Problem 13-45 Weighted-Average Cost of Capital; Economic Value Added (EVA) (LO 13- 2) [The following information applies to the questions displayed below.] All-Canadian,

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Required information Problem 13-45 Weighted-Average Cost of Capital; Economic Value Added (EVA) (LO 13- 2) [The following information applies to the questions displayed below.] All-Canadian, Lid. is a multiproduct company with three divisions: Pacific Division, Plains Division, and Atlantic Division. The company has two sources of long-term capital: debt and equity. The interest rate on All-Canadian's $400 million debt is 9 percent, and the company's tax rate is 30 percent. The cost of All- Canadian's equity capital is 12 percent. Moreover, the market value of the company's equity is $600 million. (The book value of All-Canadian's equity is $430 million, but that amount does not reflect the current value of the company's assets or the value of intangible assets.) The following data (in millions) pertain to All-Canadian's three divisions. Before-Tax Operating Current Total Division Income Liabilities Assets Pacific $14 $6 $ 70 Plains 45 300 Atlantic 48 480 Problem 13-45 Part 2 Compute the economic value added (or EVA) for each of the company's three divisions. (Do not round intermediate calculations. Enter your final answers in dollars and not millions.) Division Economic Value Added Pacific Plains Atlantic

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