1. Using the MicroDrive data, calculate the MVA for 2000. Assume that the price of a share of stock is $15.

Group of answer choices

a. $190 million

b. $90 million

c. -$90 million

+ 2000 MicroDrive Inc.: December 31 Balance Sheets (Millions of Dollars) Assets 2001 2000 Liabilities and Equity 2001 Cash S 10 $ 15 Accounts payable S 60 Marketable securities 0 65 Notes payable 110 Accounts receivable 375 315 Accruals 140 Inventories 615 415 Total current liabilities $ 310 Total current assets $1,000 $ 810 Long-term bonds 754 Net plant and equipment 1,000 870 Total debt $1.064 Preferred stock (400,000 shares) S 40 Common stock (50,000,000 shares) 50 Additional paid-in capital 80 Retained earnings 766 Common equity $ 896 Total assets $2.000 $1.600 Total liabilities and equity $2.000 S 30 60 130 $ 220 580 $ 800 S 40 S 50 80 710 S 840 $1.680 MicroDrive Inc.: Income Statements For Years Ending December 31 (Millions of Dollars, Except for Per-Share Data) Net sales Costs excluding depreciation & amortization Earnings before taxes, deprec., & amort. (EBITDA) Depreciation Amortization Total operating costs Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (40%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Common dividends Addition to retained earnings Per-share data: Common stock price Earnings per share (EPS)" Dividends per share (DPS) Book value per share (BVPS)" Cash flow per share (CFPSY 2001 $3,000.0 $2,616.2 383.8 100.0 0.0 $2.716.2 283.8 88.0 $ 195.8 78.3 $ 117.5 4.0 $ 113.5 $ 57.5 $ 56.0 2000 $2.850.0 $2,497.0 353.0 90.0 0.0 $2.587.0 $ 263.0 60.0 $ 203.0 81.2 $ 121.8 4.0 $117.8 $ 53.0 $ 64.8 $23.00 S 2.27 S 1.15 $17.92 $4.27 $26.00 $ 236 $ 1.06 $16.80 $4.16 There are 50,000,000 shares of common stock outstanding. Note that EPS is based on earnings after preferred dividends - that is, on net income available to common stockholders. Calculations of EPS and DPS for 2001 are as follows