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The Marx Book Company has two divisions: The Brick and Mortar division sets books through more than 100 bookstores throughout the United States, the Internet
The Marx Book Company has two divisions: The Brick and Mortar division sets 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: Total assets Noninterest-bearing current abilities Interest expense Net income fossi Tax rate Cost of capital Brick and Mortar DIVISION $179.200.000 7.722,000 1,386,000 30,591,000 20% 10% Internet Division $17,028,000 2.772.000 460,350 (1,237,500 O 12% Evaluate the two divisions in terms of economic value added (EVA). (Enter negative answers preceding elther-sign, e.g.-45 or In parentheses, eg. (451) Brick & Mortar Division Internet Division EVA $
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