Nobles Corporation Provided the Following Income Statement for Two of Its

Essay

Nobles Corporation provided the following income statement for two of its divisions: East and West.
Nobles' actual weighted-average cost of capital is 10% and its tax rate is 30%.The East division balance sheet showed $300,000 of assets $60,000 current and $240,000 long-term and $320,000 of liabilities $120,000 current and $200,000 long-term.The West division reported $360,000 of assets $80,000 current and $280,000 long-term and $260,000 of liabilities $60,000 current and $200,000 long-term.
Required:
a.Calculate the economic value added for each division.
b.Which of the two managers will be rated higher on performance? Why?