Use the following to answer questions:
Daniels Co. uses long-term debt and equity capital as primary sources of funds. The long-term debt has a market value and book value of $8.5 million and was issued at a 9 percent interest rate. The equity capital has a book value of $3 million and a market value of $7.5 million. Daniels has 3 major centers located around the country with the following operating income, total assets and current liabilities:

The cost of equity capital is 12 percent, with a 40 percent tax rate.
-What is the EVA for the Midwest Division?
A) $213,740
B) $143,300
C) $ 75,460
D) $487,240

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Use the following to answer questions:
Daniels Co. uses long-term debt and equity capital as primary sources of funds. The long-term debt has a market value and book value of $8.5 million and was issued at a 9 percent interest rate. The equity capital has a book value of $3 million and a market value of $7.5 million. Daniels has 3 major centers located around the country with the following operating income, total assets and current liabilities:
  
The cost of equity capital is 12 percent, with a 40 percent tax rate.
-What is the EVA for the Midwest Division?
A) $213,740 
B) $143,300 
C) $ 75,460 
D) $487,240

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The Answer of Use the following to answer questions:
Daniels Co. uses long-term debt and equity capital as primary sources of funds. The long-term debt has a market value and book value of $8.5 million and was issued at a 9 percent interest rate. The equity capital has a book value of $3 million and a market value of $7.5 million. Daniels has 3 major centers located around the country with the following operating income, total assets and current liabilities:
  
The cost of equity capital is 12 percent, with a 40 percent tax rate.
-What is the EVA for the Midwest Division?
A) $213,740 
B) $143,300 
C) $ 75,460 
D) $487,240

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