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The following data pertain to Dana Industries: Interest rate on debt capital: 9% Cost of equity capital: 12% Before-tax operating income: P35 million Market value

The following data pertain to Dana Industries:

Interest rate on debt capital: 9% Cost of equity capital: 12% Before-tax operating income: P35 million Market value of debt capital: P60 million Market value of equity capital: P120 million Total assets: P150 million Income tax rate: 30% Total current liabilities: P15 million

Required: Compute Danas weighted-average cost of capital. Compute Danas economic value added.

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