Question - Economic Value Added
Refer to the Golden Gates construction Associates. The company has two divisions: The real Estate and the Construction. The divisons' total assets, current liabilities, and before-tax operating income for the most recent year
Division Total Assets Current liabilities Before tax Operating Income
Real Estate $100,000,000 $6,000,000 $20,000,000
Construction 60,000,000 4,000,000 18,000,000
Required: Calculate the Economic Value Added for each of Golden Gate Construction Associates divisions. (You will need to use the weighted average cost of capital, which was used in the previous exercise).
Attachment:- Assignment.rar