Answer the Following Questions Using the Information Below:
Echidna Company

question 25

Multiple Choice

Answer the following questions using the information below:
Echidna Company has two sources of funds: long-term debt with a market and book value of $30 million issued at an interest rate of 10%,and equity capital that has a market value of $18 million (book value of $5 million) .Echidna Company has profit centres in the following locations with the following operating profits,total assets,and current liabilities.The cost of equity capital is 15%,while the tax rate is 30%.
$$\begin{array} { | l | r | r | r | } \hline & \text { Operating Profit } & { \text { Assets } } & \text { Current Liabilities } \\\hline \text { Mt Iron } & \$ 1630000 & \$ 5625000 & \$ 1600000 \\\hline \text { Mt Pilbara } & \$ 2200000 & \$ 7500000 & \$ 2400000 \\\hline \text { Broken Hill } & \$ 4900000 & \$ 13875000 & \$ 6360000 \\\hline\end{array}$$
-What is the EVA for Broken Hill?

• A)$2 678 500
• B)$2 337 400
• C)$2 806 126
• D)$2 630 126

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Definitions:

Countertransference

A psychoanalytic term that refers to a therapist’s unconscious personal reaction to aspects of the client.

White Privilege

The societal privileges that benefit White people over non-White people in some societies, particularly if they are otherwise under the same social, political, or economic circumstances.

Personal Responsibility

The concept that individuals are accountable for their own actions and decisions and should take an active role in shaping their lives.

Non-Mainstream Cultures

Cultures that exist outside the dominant or mainstream social, economic, and cultural systems, often retaining distinct languages, traditions, and social practices.