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:

Ontological Health Model

A conceptual model focusing on the being and existence of individuals in relation to their health and well-being.

Constant Movement

Continuous motion or activity without cessation.

Health

A state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.

Alleviation of Suffering

The act or process of reducing or relieving pain, distress, or hardship in individuals, contributing to improved well-being and comfort.