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Within your company above, the Human Resources Division has $2,500,000 in total assets, which is the total capital employed by this division. The tax rate

  1. Within your company above, the Human Resources Division has $2,500,000 in total assets, which is the total capital employed by this division. The tax rate is 30% and the Earnings Before Interest and Tax (EBIT) of Human Resources is $800,000. What is the Economic Value Added (EVA) for the Human Resources Division?

*FYI: Cost of Debt = 7.14% (1-.30) = 5.0%

b. Within your company above, the Recruiting Division has $1,200,000 in total assets, which is the total capital employed by this division. The tax rate is 20% and the Earnings Before Interest and Tax (EBIT) of Recruiting is $100,000. What is the Economic Value Added (EVA) for the Recruiting Division?

c. Is the Recruiting Division adding to the economic value of this company?

*FYI: Cost of Debt = 5.0% (1-.20) = 4.0%

Could you please answer these asap?

thanks!

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