Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a ...

Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%. Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

Total AssetsCurrent LiabilitiesOperating Income
Blue Div.$9,500,000$2,800,000$1,055,000
Gold Div.$11,000,000$2,200,000 $1,200,000

What is Economic Value Added ( ) for the Blue Division?
A) -$233,400
B) $21,960
C) $188,600
D) $433,960