Answer the following questions using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million). Coldbrook Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 15%, while the tax rate is 30%.

-What is the EVA for Stonybrook?
A) $1,315,063
B) $1,403,063
C) $1,108,000
D) $1,168,700

Question

Answer the following questions using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million). Coldbrook Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 15%, while the tax rate is 30%.
 
-What is the EVA for Stonybrook?
A) $1,315,063 
B) $1,403,063 
C) $1,108,000 
D) $1,168,700

Quizplus · Accepted Answer

The Answer of Answer the following questions using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million). Coldbrook Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 15%, while the tax rate is 30%.
 
-What is the EVA for Stonybrook?
A) $1,315,063 
B) $1,403,063 
C) $1,108,000 
D) $1,168,700

Answer the Following Questions Using the Information Below