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 for Stonybrook?
A)$1,108,000
B)$1,168,700
C)$1,315,063
D)$1,403,063
E)$994,188

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 for Stonybrook?
A)$1,108,000 
B)$1,168,700 
C)$1,315,063 
D)$1,403,063 
E)$994,188

Quizplus · Accepted Answer

Stonybrook is the most expensive college, with a total cost of $1,168,700.

Answer the Following Question(s)using the Information Below