Answer the Following Question(s)using the Information Below

question 53

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 Blue Division?

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

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Definitions:

Violent Video Games

Video games that feature scenes of violence, which are sometimes speculated to influence aggressive behavior in players.

Violent Television

TV content that graphically depicts acts of physical aggression and violence.

Habitual Drinker

An individual who regularly consumes alcohol, often to the point where it becomes a routine or automatic behavior.

Behave Aggressively

To act or respond in a forceful or hostile manner, whether physically, verbally, or through other forms of behaviors aimed at causing harm or asserting dominance.