Answer the Following Questions Using the Information Below:
Coldbrook Company

question 131

Multiple Choice

Answer the following questions using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%,and equity capital that has a market value of $9 million (book value of $5 million) .Coldbrook 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%.
$$\begin{array} { | l | r | r | r | } \hline & \text { Operating Profit } & { \text { Assets } } & \text { Current Liabilities } \\\hline \text { Darwin } & \$ 815000 & \$ 3750000 & \$ 800000 \\\hline \text { Hobart } & \$ 1100000 & \$ 5000000 & \$ 1200000 \\\hline \text { Newcastle } & \$ 2450000 & \$ 9250000 & \$ 3180000 \\\hline\end{array}$$
-What is the EVA for Newcastle?

• A)$1 108 000
• B)$1 403 063
• C)$1 315 063
• D)$1 168 700

---

Definitions:

Neurotransmitter

Chemical substances in the nervous system that transmit signals between neurons.

Dopamine

A neurotransmitter involved in a number of functions, including mood, sleep, learning, and the reward system, often linked to feelings of pleasure and satisfaction.

Parkinsonism

A syndrome characterized by tremor, bradykinesia, rigidity, and postural instability, often associated with Parkinson's disease but can be caused by other conditions as well.

Muscular Rigidity

An increased tone of muscle tissue leading to stiffness and resistance to movement.