Waldorf Company has two sources of funds: longterm debt with a market and book value of issued at an interest rate of %, and equity capital that has a market value of (book value of ). Waldorf Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is %, while the tax rate is %. Operating Income Assets Current Liabilities St. Louis $480,000 $2,000,000 $100,000