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Required information [The following information applies to the questions displayed below.] All-Canadian, Ltd. is a multiproduct company with three divisions: Pacific Division, Plains Division, and

Required information

[The following information applies to the questions displayed below.]

All-Canadian, Ltd. 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-Canadians $404 million debt is 9 percent, and the companys tax rate is 30 percent. The cost of All-Canadians equity capital is 10 percent. Moreover, the market value of the companys equity is $606 million. (The book value of All-Canadians equity is $434 million, but that amount does not reflect the current value of the companys assets or the value of intangible assets.)

The following data (in millions) pertain to All-Canadians three divisions.

Division Before-Tax Operating Income Current Liabilities Total Assets
Pacific $ 18 $ 8 $ 74
Plains 49 7 304
Atlantic 43 11 487

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.)

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