Use the Information Below to Answer the Following Question(s)

question 31

Multiple Choice

Use the information below to answer the following question(s) .
Brandorf Company has two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million) . The cost of equity capital is 5 percent, while the tax rate is 30 percent. Brandorf Company has profit centres in the following locations with the following data:

-What is EVA for Ottawa?

• A) $218,200
• B) $42,600
• C) $163,200
• D) $480,000
• E) $140,000

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Definitions:

Ocean

A vast body of salt water that covers approximately 71% of the Earth's surface, divided into five major oceans.

Working Class

A socioeconomic group consisting of individuals engaged in manual labor or industrial work, often recognized for their role in the production process and the economy.

Political Power

The ability or capacity of a person or group to influence or control the actions, policies, or decisions of others, typically within a governmental or organizational context.

Industrialization

The process of transforming economies from primarily agricultural to one based on the manufacturing of goods, involving mechanization and factory production.