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Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Washington's actual cost of capital

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Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Washington's actual cost of capital was 12%. Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 3. Conceptual Connection: Is each division creating or destroying wealth? Adams Division Destroying wealthCreating wealth Jefferson Division Destroying wealthCreating wealth 4. Conceptual Connection: Describe generally the types of actions that Washington's management team could take to increase Jefferson Division's EVA? 1. Increase the after-tax operating profit that is generated from using the same amount of invested capital. 2. Continue to generate the same after-tax operating profit but use less capital to do so. 3. Continue to generate the same after-tax operating profit using the same amount of capital, but with a lower cost of capital. 4. Decrease the after-tax operating profit that is generated from using the same amount of invested capital. 5. Continue to generate the same after-tax operating profit but use more capital to do so. a,b and cb,c and de, a and c

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