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uestion 20 Saved 2.85714 points Kernel Industries has two sources of funds: long-term debt with a market and book value of $5 million issued
uestion 20 Saved 2.85714 points Kernel Industries has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that has a market value of $4 million (book value of $2 million). Kemel Industries has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 12%, while the tax rate is 25%. St. Augustine Austin New Orleans Operating Income What is the EVA for New Orleans? S 480,000 $600,000 $1.020.000 Assets $ 2.000.000 Current Liabilities $ 100,000 $ 300.000 $4,000,000 $6.000.000 $600.000 $225,000 $765,000 $207,180 $557,820
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