^{[Economic Value Added] Kareem Construction Company has the following amounts of interest-bearing debt and common equity capital: FINANCING SOURCE DOLLAR AMOUNT INTEREST RATE COST OF CAPITAL Short-term loan $200,000 12%(interest)}

^{Long-term loan $200,000 14%(interest)}

^{Equity capital $600,000 22%(cost of capital) Kareem Construction is in the 30 percent average tax bracket.}

^{A. Calculate the after-tax WACC for Kareem.}

^{B.Determine the after-tax dollar cost of financial capital used by Kareem.}

^{C. Kareems EBIT was $300,000. Calculate Kareems NOPAT.}