Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Consider the following data for the firms Acme and Apex:
Equity ($ million) | Debt ($ million) | ROC | Cost of Capital | |
Acme | 290 | 145 | 17% | 9% |
Apex | 1,450 | 483 | 15% | 10% |
a. Calculate the economic value added for Acme and Apex (round to 2 decimal places).
Economic value added for Acme | $? | million |
Economic value added for Apex | $? | million |
b. Calculate the economic value added per dollar of invested capital for Acme and Apex (round to 2 decimal places)?
Economic value added for Acme | per dollar | |
Economic value added for Apex | per dollar |
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