Laiho Industries€™s 2015 and 2016 balance sheets (in thousands of dollars) are shown.

a. Sales for 2016 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm€™s 2016 income statement.
b. Construct the statement of stockholders€™ equity for the year ending December 31, 2016, and the 2016 statement of cash flows.
c. Calculate 2015 and 2016 net operating working capital (NOWC) and 2016 free cash flow (FCF).
d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company€™s shareholders?
e. Assume that the firm€™s after-tax cost of capital is 10.5%. What is the firm€™s 2016 EVA?
f. Assume that the firm€™s stock price is $22 per share and that at year-end 2016 the firm has 10 million shares outstanding. What is the firm€™s MVA at year-end 2016?

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2016 2015 $ 89,725 $102,850 Cash Accounts receivable 103,365 85,527 Inventories 38,444 34,982 Total current assets $244,659 $210,234 Net fixed assets 67,165 $311,824 42,436 Total assets $252,670 $ 30,761 $ 23,109 Accounts payable Accruals 30,477 22,656 Notes payable 16,717 14,217 $ 77,955 $ 59,982 Total current liabilities Long-term debt 63,914 $123,896 76,264 Total liabilities $154,219 Common stock 100,000 90,000 Retained earnings 57,605 38,774 Total common equity Total liabilities and equity $157,605 $128,774 $311,824 $252,670