Answer the Following Question(s) Using the Information Below

question 136

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 (EVA) for the Blue Division?

• A) -$233,400
• B) $21,960
• C) $188,600
• D) $433,960
• E) -$63,800

---

Definitions:

Affirmative Action

Policies and practices aimed at increasing opportunities for historically marginalized groups in areas such as education and employment.

Equal Employment Opportunity Commission

A federal agency that enforces laws against workplace discrimination.

Glass Ceilings

Invisible barriers that prevent certain groups, often women and minorities, from rising beyond a certain level in various hierarchical organizations.

AAP Awareness

Awareness regarding Affirmative Action Programs designed to promote equal opportunity in employment.