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Answer the Following Question(s)using the Information Below

Question 38

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Answer the following question(s) 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 centres 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%.
Answer the following question(s) 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 centres 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%. -What is the for Brooksville? A) $476,250 B) $428,000 C) $415,525 D) $390,000 E) $318,750
-What is the for Brooksville?


A) $476,250
B) $428,000
C) $415,525
D) $390,000
E) $318,750

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