Refer to the data in the preceding exercise for Golden Gate Construction Associates.

Refer to the data in the preceding exercise for Golden Gate Construction Associates.

Refer to the data in the preceding exercise for Golden Gate Construction Associates. The company has two divisions: the real estate division and the
construction division. The divisions’ total assets, current liabilities, and before-tax operating income for the most recent year are as follows:

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 (EVA) for each of Golden Gate Construction Associates’ divisions. (You will need to use the weighted-average cost of
capital, which was computed in the preceding exercise.)

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