1. Assuming there are 20 million shares outstanding, calculate EPS, Dividends per share, Book value per share, NOWC, and net cash flow for Year 0.

2. Assuming a tax rate of 25%, calculate NOPAT and operating cash flows for Year 0

3. If the price per share of common stock is $35 (shares = 20 million), calculate the MVA for Year 0.

4. a. Find operating capital for Year 0.

b. If the after tax cost of capital is 9%, calculate the EVA for Year 0

Income Statement Year 0 (5 millions) Revenues 800 300 100 Operating Costs Depreciation Amortization EBIT Interest Expense EBT 220 Taxes (25%) Net Income Dividends S Add to RE 120 S 100 200 Balance Sheet Cash Receivables Inventories Current Assets Net Fixed Assets 150 450 100 Total Assets 550 50 Accounts Payable Notes Payable Accruals 10 30 Current Liabilities 90 Bonds 110 Common Stock 150 Retained Earnings Total Liab & Eq $ S