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Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%,

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Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of S9 million (book value of $5 million). 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 30%. 1) What is the EVA for Bish Bash Falls? A) $338, 563 B) $305,000 C) $275, 500 D) $255, 500 2) What is the EVA for Brooksville? A) $476, 250 B) $428,000 C) $415, 525 D) $390,000 3) What is the EVA for Stonybrook? A) $1, 108,000 B) $1, 168, 700 C) $1, 315, 063 D) $1, 403, 063

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