Answer the Following Question(s)using the Information Below

question 24

Multiple Choice

Answer the following question(s) using the information below:
Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%.Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

-What is Economic Value Added ( ) for the Gold Division?

• A)-$283,200
• B)-$82,560
• C)$196,800
• D)$397,440
• E)-$195,200

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Definitions:

Adoption Studies

Research studies that compare similarities between adopted children and their biological and adoptive parents to understand the influence of genetic vs. environmental factors.

Genetics

The investigation into how traits are passed down from one generation to the next and the differences in these inherited traits.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Meta-Analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a conclusion about a body of research.