Philco Fasteners has 3 divisions; Nuts, Rivets and Screws. Data about these divisions and Philco as a whole are as follows. Management has set a minimum required rate of return for each department at 7.5%. Philco's cost of equity is 1 1 % Philco Totals Nuts Rivets Screws Revenues Variable Costs Fixed Costs Operating Income Interest Cost on Long Term Debt Income before Income Taxes Income Tax Net Income 1,700,000 2,400,0003,100,000 7,200,000 1,020,0001,560,0002,170,0004,750,000 400,000 1,400,000 530,000 1,050,000 180,000 870,000 278,400 591,600 450,000 230,000 550,000 290,000 Philco Rivets Screws Totals NBV's at end of year Current Assets Long Term Assets Total Assets Current Liabilities Long Term Debt Shareholders Equity Total LT Liabilities and Owners Equity Market Value of Equity Nuts 600,0001,500,000 600,000 1,500,0002,400,0004,500,000 1,000,000 2,000,0003,000,000 6,000,000 450,000 3,000,000 2,550,000 6,000,000 9,000,000 400,000 500,000 100,000 100,000 250,000 a) What is Philco's tax rate? (2 marks) b) What is Philco's Ka? (2 marks) c) What isPhilco's WACC? (3 marks) d) What is the EVA of Division B? (3 marks) e) Comment on your answer to part d) above. Be specific in your answer. (2 marks)