1. Sales for 2016 were $500,000,000, and EBITDA was 20% of sales. Furthermore, depreciation and amortization were 15% of net fixed assets, interest was $10,000,000, the corporate tax rate was 40%, and pays 25% of its net income as dividends. Given this information, construct the firms 2016 income statement.

2. Construct the statement of stockholders equity for the year ending December 31, 2016.

3. Calculate 2015 and 2016 net operating working capital (NOWC) and 2016 free cash flow (FCF).

4. Assume that the firms after-tax cost of capital is 10.5%. What is the firms 2016 EVA?

5. Assume that the firms stock price is $22 per share and that at year-end 2016 the firm has 10 million shares outstanding. What is the firms MVA at year-end 2016?

2016 2015 Assets Cash S 102,85089,725 Accounts Inventori Total curl 244,659 210,234 Net fixed Total asse 311,824 252,670 103,365 38,444 85,527 34,982 67,165 42,436 Liabilities and equity Accounts30,761 23,109 Accruals Notes pa Total cur $ 77,955 59,982 Long-tern Total liat 154,219 123,896 Common Retained Total con 157,605 128,774 Total liabi 311,824 252,670 30,477 16,717 22,656 14,217 76,264 63,914 100,000 57,605 90,000 38,774