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The Kennel Book Company has two divisions: The Brick and Mortar division sells books through more than 100 bookstores throughout the United States; the Internet

The Kennel Book Company has two divisions: The Brick and Mortar division sells books through more than 100 bookstores throughout the United States; the Internet division was formed 18 months ago and sells books via the Internet. Data for the past year are:

Brick and Mortar Division

Internet Division

Total assets

$136,080,000

$13,003,200

Noninterest-bearing current liabilities

5,896,800

2,116,800

Interest expense

1,058,400

351,540

Net income (loss)

23,360,400

(945,000

)

Tax rate

20%

0

Cost of capital

10%

12%

Evaluate the two divisions in terms of economic value added (EVA). (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)

Brick & Mortar Division

Internet Division

EVA

$enter a dollar amount

$enter a dollar amount

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