Coldbrook Company has two sources of funds: long-term debt with a market and book value of...

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Coldbrook Company has two sources of funds: long-term debt with a market and book value of $16,000,000 issued at an interest rate of 11%, and equity capital that has a market value of $9,000,000 (book value of $4,000,000). 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%. Operating Income $815,000 $1,500,000 $2,450,000 Current Liabilities $800,000 Bish Bash Falls Brooksville $1,200,000 $3,180,000 Stonybrook What is the EVA for Brooksville? (Round intermediary calculations to four decimal places.) Assets $3,750,000 $5,200,000 $9,250,000 Coldbrook Company has two sources of funds: long-term debt with a market and book value of $16,000,000 issued at an interest rate of 11%, and equity capital that has a market value of $9,000,000 (book value of $4,000,000). 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%. Operating Income $815,000 $1,500,000 $2,450,000 Current Liabilities $800,000 Bish Bash Falls Brooksville $1,200,000 $3,180,000 Stonybrook What is the EVA for Brooksville? (Round intermediary calculations to four decimal places.) Assets $3,750,000 $5,200,000 $9,250,000

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To calculate Economic Value Added EVA for Brooksville we need to follow these steps 1 Calculate Net ... View the full answer