Calculate the economic value added for each of golden gate

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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).

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Reference no: EM131644967

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