Answer the following question(s) 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 centres 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 Brooksville?
A) $476,250
B) $428,000
C) $415,525
D) $390,000
E) $318,750

Question

Answer the following question(s) 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 centres 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 Brooksville?
A) $476,250 
B) $428,000 
C) $415,525 
D) $390,000 
E) $318,750

Quizplus · Accepted Answer

The Answer of Answer the following question(s) 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 centres 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 Brooksville?
A) $476,250 
B) $428,000 
C) $415,525 
D) $390,000 
E) $318,750

Answer the Following Question(s) Using the Information Below