Look again at Table 28.11. At the end of fiscal 2011 Estée Lauder had 197 million shares outstanding 21 with a share price of $105.

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Look again at Table 28.11. At the end of fiscal 2011 Estée Lauder had 197 million shares outstanding 21 with a share price of $105. The company's weighted-average cost of capital was about 10%. Calculate:
a. Market value added.
b. Market-to-book ratio.
c. Economic value added.
d. Return on capital.
Table 28.11

End of Year Start of Year Balance Sheet 2 Assets Current assets: Cash and marketable securities Accounts receivable Inventories Other current assets 5 1,253 946 996 492 3.687 1,121 746 827 428 3,121 6 8 Total current assets Fixed assets: 10 1 Property, plant, and equipment 12 13 14 Other long-term assets 15 16 17 18 19 20 Total current liabilities 21 Long-term debt 22 Other long-term liabilities 2,862 1,719 1,143 1,444 6,274 2,525 1,501 1,024 1,191 5,336 Less accumulated depreciation Net fixed assets Total assets Liabilities and Shareholders' Equity Current liabilities: Debt due for repayment Accounts payable 138 1,805 1,943 1,080 iM.i 3,627 2,629 6,274 23 1,549 1,572 1,22i 610 3,370 1,948 5,336 Total liabilities Total shareholders' equity Total liabilities and shareholders' equity 24 26 Income Statement 8,810 1,937 5,486 298 1,089 64 1,025 322 703 148 Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation 31 Earnings before interest and taxes (EBIT Interest expense Taxable income Tax 35 Net income 26 Dividends Addition to retained earnings