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Waldorf Company has two sources of funds: long-term debt with a market and book value of $5 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 $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). 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 12%, while the tax rate is 25%. 1) What is the EVA for St. Louis? A) $127, 870 B) $163, 730 C) $196, 270 D) $360,000 2) What is the EVA for Cedar Rapids? A) $67, 790 B) $110,000 C) $117,000 D) $152, 500 3) What is the EVA for Wichita? A) $225,000 B) $765,000 C) $207, 180 D) $557, 820

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