Stonex Corp, Whose Tax Rate Is 35%, Has Two Sources

question 9

Multiple Choice

Stonex Corp, whose tax rate is 35%, has two sources of funds: long-term debt with a market value of $6,200,000 and an interest rate of 9%, and equity capital with a market value of $14,000,000 and a cost of equity of 13%. Stonex has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

Calculate EVA for the Gold Division. (Round intermediary calculations to four decimal places.)

• A) -$56,290
• B) $56,290
• C) $1,040,000
• D) $983,710

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Definitions:

Toseland And Rivas

Toseland and Rivas refer to authors renowned for their contributions to the field of social work, particularly in the context of group work and interventions.

Working Phase

In therapy or group work, the period during which the core work towards goals is actively pursued, characterized by deeper engagement and effort.

Task Group

A collective of individuals working together toward a common objective, usually with defined roles and tasks.

Specific Purpose

A clear, defined objective or goal that guides actions or interventions, often formulated to address a particular issue or need.