Coldbrook Company has two sources of funds: long-term debt with a market and book value of $19,000,000 issued at an interest rate of 11%, and equity capital that has a market value of $7,000,000 (book value of $5,000,000). 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 16%, while the tax rate is 35%.
| Operating Income | Assets | Current Liabilities |
Bish Bash Falls | $815,000 | $3,750,000 | $800,000 |
Brooksville | $1,100,000 | $5,300,000 | $1,200,000 |
Stonybrook | $2,450,000 | $9,250,000 | $3,180,000 |
What is the EVA
® for Brooksville? (Round intermediary calculations to four decimal places.)
◦ $715,000
◦ $390,730
◦ $166,179
◦ $324,270