Answer the Following Question(s)using the Information Below

Multiple Choice

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 Stonybrook?

A) $1,108,000
B) $1,168,700
C) $1,315,063
D) $1,403,063
E) $994,188