Requirement 4. Speed Auto Company, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $17,000,000 at an interest rate of 10%, and equity capital with a market value of $9,000,000 and a cost of equity of 17%. Applying the same weighted-average cost of capital (WACC) to each division, calculate EVA for each division. Begin by determining the formula to calculate WACC. Market value of debt After tax cost of debt ) + ( Market value of equity x Market value of debt + Cost of equity Market value of equity WACC (Enter the amount as a decimal. Round the WACC to five decimal places, in the format X.XXXXX.) The company's WACC is 0.10462 Determine the formula to calculate the EVA of each division. Then enter the amounts for the new car division and the performance parts division and calculate the EVA for each. (Enter the WACC to five decimal places in the format X.XXXXX. Round your intermediate calculations to the nearest whole number. Use parentheses or a minus sign when entering a negative EVA.) After tax operating inc. - ( New Car Division: WACC Total assets T-C 0.10462 x ( Enter any number in the edit fields and then click Check Answer. Current liabilities )) = EVA Data Table Division New Car Performance Parts Division Total assets $ 25,000,000 $ 25,500,000 Current liabilities $ 6,600,000 $ 8,100,000 Operating income EA 2,250,000 $ 2,550,000 Required rate of return 12% 12%