Question: 285714 points Save Any Kernel Industries has two sources of funds long-term debt with a market and book value of $5 million issued at an
285714 points Save Any Kernel Industries has two sources of funds long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that has make value of $4 million (book value of $2 million) Kernel Industries has profit centers in the following locations with the following operating incomes totales and current liabilities. The cost of equity capital is 12%, while the tax rate is 25% Operating Income Assets Current Liabilities St. Augustine $ 480,000 $ 2.000.000 $ 100,000 Austin $600,000 $ 4.000.000 $ 300,000 New Orleans $1.020.000 $6,000,000 $600,000 What is the EVA for New Orleans? $225,000 8765,000 $207,180 $557.820
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