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Waldorf Company has two sources of funds: long-term debt with a market and book value of S5 million issued at an interest rate of 12%,

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Waldorf Company has two sources of funds: long-term debt with a market and book value of S5 million issued at an interest rate of 12%, and equity capital that has a market value of $4 million (book value of $2 million). Waldorf Company has profit centers in the following locations with the following operating incomes, total assetn, and current liabilities. The cost of equity capital is 12%, while the tax rate is 25% Waldorf has two operating divisions, the East division and the West division, with the following financial measures for the current year Total-Assetsa Current-Liabilitiesa Operating Incomea $6,000,000 $6,000,000 East-Divisiona $400,000- $1,080,000 $1,020,000 West Divisiona S600,000 What is the Economic Value Added (EVA) for the West Division? O $225.000 O S765,000 $207,180 $557,820 Question 13 of 40 A Moving to the next question prevents changes to this answer 551 PM 12/201 Chp delete brt sc

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