10. Shrives Publishing recently reported $10,750 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow? a. $1,873 b. $1,972 c. $2,076 d. $2,185 e. $2,300 11. Hayes Corporation has $300 million worth of common equity on its balance sheet and 6 million shares of stock outstanding. The company's Market Value Added (MVA) is $162 million. What is the company's stock price? a. $ 23 b. $ 32 c. $ 50 d. $ 77 e. $138 12. Scranton Shipyards has $20 million in total invested capital. The company's after-tax percentage cost of capital is 10 percent. The company has the following income statement: Sales $10.0 million Operating costs 6.0 million Operating income (EBIT) $ 4.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 2.0 million Taxes (40%) 0.8 million Net income $ 1.2 million What is Scranton's EVA? a. $ 400.000 b. $ 800,000 c. $1,200,000 d. $2,000,000 e. $4,000,000