Stonex Corp,whose Tax Rate Is 35%,has Two Sources of Funds

question 54

Multiple Choice

Stonex Corp,whose tax rate is 35%,has two sources of funds: long-term debt with a market value of $6,200,000 and an interest rate of 9%,and equity capital with a market value of $14,000,000 and a cost of equity of 13%.Stonex has two operating divisions,the Blue division and the Gold division,with the following financial measures for the current year:

Calculate EVA for the Gold Division.(Round intermediary calculations to four decimal places. )

• A)-$56,290
• B)$56,290
• C)$1,040,000
• D)$983,710

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Definitions:

NREM Sleep

Non-Rapid Eye Movement sleep, characterized by slower brain waves, which is divided into three stages and accounts for 75-80% of total sleep time.

Ascending Fibres

Nerve fibers that carry information from the body's sensory receptors upward to the brain, particularly pertinent to the sensory pathways.

Reticular Activating System

A network of neurons located in the brainstem that plays a central role in regulating wakefulness and sleep-wake transitions.

REM Sleep

A stage of sleep characterized by rapid eye movement, vivid dreams, and increased brain activity.