Answer the Following Questions Using the Information Below:
Coldbrook Company

question 38

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 centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 15%, while the tax rate is 30%.
$$\begin{array} { | l | r | r | r | } \hline & \text { Operating Income } & \text { Assets } & \text { Current Liabilities } \\\hline \text { Bish Bash Falls } & \$ 815,000 & \$ 3,750,000 & \$ 800,000 \\\hline \text { Brooksville } & \$ 1,100,000 & \$ 5,000,000 & \$ 1,200,000 \\\hline \text { Stonybrook } & \$ 2,450,000 & \$ 9,250,000 & \$ 3,180,000 \\\hline\end{array}$$
-What is the EVA for Brooksville?

• A) $476,250
• B) $428,000
• C) $415,525
• D) $390,000

Recognize the role of leader attributes and follower receptivity in servant leadership.

Distinguish between servant leader behaviors.

Appreciate the role of personal experience and storytelling in the development of servant leadership theories.

Understand how servant leadership compares and contrasts with other leadership theories.

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Definitions:

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for an employee's future benefit.

Bereavement Time

Time that an employee can take off when a family member or very close friend dies.

Coordinates

A set of numbers that determine the position of a point or object within a space.

Compliance

The act of conforming to, following, or obeying a rule, law, or order.