Case #2 Lallybrook Co. two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million). The cost of equity capital is 5 percent, while the tax rate is 30 percent. Lallybrook Co. operates three profit centres. Data for the past year are as follows: Cold Lake Orillia Total Operating Income $1,080,000 $1,350,000 $2,295,000 Total Assets $4,500,000 $9,000,000 $13,500,000 Current Liabilities $225,000 $675,000 $1,350,000 Amos Required: (A) What is the company's weighted-average cost of capital? (B) What is the EVA for each profit centre? (C)One criticism of the EVA method is that it is subject to manipulation (see page 905 of Datar et al. (2019)). Why would managers be interested in manipulating the EVA and how could they do it