OSA Company has the following values of interest-bearing debt and common equity capital: Financing Source Dollar Amount Interest Rate Cost of Capital Short-term loan $200,000 12% Long-term loan...

OSA Company has the following values of interest-bearing debt and common equity capital:

Financing Source   Dollar Amount   Interest Rate   Cost of Capital
Short-term loan              $200,000         12%
Long-term loan               $200,000         14%
Equity capital                  $600,000                                    22%

OSI is in the 30 percent average tax bracket.

A. Calculate the after-tax weighted average cost of capital for OSI.

B. Given that OSI's EBIT is $300,000, compute its EVA.

C. Did the venture build or destroy value? Explain.

Make sure to show all the formulas and calculations in addition to any assumption needed.