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Coldbrook Company has two sources of funds: longterm debt with a market and book value of $19,000,000 issued at an interest rate of 10%, and
Coldbrook Company has two sources of funds: longterm debt with a market and book value of $19,000,000 issued at an interest rate of 10%, and equity capital that has a market value of $4,000,000 (book value of $4,500,000).
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 | $815,000 | $3,750,000 | $800,000 |
Brooksville | $1,400,000 | $5,300,000 | $1,200,000 |
Stonybrook | $2,450,000 | $9,250,000 | $3,180,000 |
What is the EVA for Brooksville? (Round intermediary calculations to four decimal places.)
Coldbrook Company has two sources of funds: long - term debt with a market and book value of $19,000,000 issued at an interest rate of 10%, and equity capital that has a market value of $4,000,000 (book value of $4,500,000 ). 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%. What is the EVA for Brooksville? (Round intermediary calculations to four decimal places.) A. $393,793 B. $327,180 C. $582,820 D. $910,000
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