25) Coldbrook Company has two sources of funds: long-term debt with a market and book value of $17,000,000 issued at an interest rate of 11%, and equity capital that has a market value of $3,000,000 (book value of $4,000,000). Coldbrook Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 15%, while the tax rate is 35%. Operating Income Assets Current Liabilities Bish Bash Falls $816,000 $4,000,000 $830,000 Brooksville $1,100,000 $5,000,000 $1,200,000 Stonybrook $2,450,000 $9,250,000 $3,180,000 What is the EVA for Bish Bash Falls? (Round intermediary calculations to four decimal places.) A) $266,339 B) $530,400 C) $264,061 D) $159,638 17) Branded Shoe Company manufactures only one type of dee and has to division, Stitching Division and the Polishing Division. The itching Divide manufactures de fo the Polishing Division, which completes the shoes and sells them to retailers The Secon Division "sells" shoes to the Polishing Division. The market price for the Folding vision to purchase a pair of shoes is $50. (Ignore changes in inventory) The fixed costs for the chang Division are assumed to be the same over the range of 40,000-10,000 units. The fixed conts for the Polishing Division are assumed to be $22 per pair at 103,000 urats Stitching's costs per pair of shoes are Direct materials Direct labor Variable overhead Division fixed costs $11 $9 $7 $5 Polishing's costs per completed pair of shoes are: Direct materials Direct labor Variable overhead Division fixed costs $20 $7 $10 $16 Calculate and compare the difference in overall corporate net income of Branded Shoe Company between Scenario A and Scenario B if the Assembly Division sells 103,000 pairs of shoes for $120 per pair to customers. Scenario A: Negotiated transfer price of $33 per pair of shoes Scenario B: Market-based transfer price A) $103,000 less net income using Scenario A. B) $1,751,000 less net income using Scenario B C) $1,751,000 more net income under Scenario A The net income would be the same under both scenarios