12 (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in 2019, what would you say about the firm's performance in 2019 Estimations of EVA (S MILLIONS) December December December December 2016 2017 2018 2019 $253 $288 $326 S458 Average 2016 2018 $289 SW Airline 2019 $247 NOPAT Operating Assets Non Interest Bearing Liab INVESTED CAPITAL $1,488 $269 $1,219 $1,602 $301 $1,301 $1,854 $318 $1,536 S2,344 $480 $1,864 $1,648 $296 $1,352 S856 $102 S754 s Cost of Capital S82 S88 $103 $125 $91 $39 EVA $171 $200 $223 S333 $198 $208 ROIC WACC Spread 20 75 6 00 14 75 22 14 6 00 16 14 21 22 6 00 15 22 24 57 6 00 18 57 21 37 6 00 15 37 32 76 7 00 25 76 12 (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in 2019, what would you say about the firm's performance in 2019 Estimations of EVA (S MILLIONS) December December December December 2016 2017 2018 2019 $253 $288 $326 S458 Average 2016 2018 $289 SW Airline 2019 $247 NOPAT Operating Assets Non Interest Bearing Liab INVESTED CAPITAL $1,488 $269 $1,219 $1,602 $301 $1,301 $1,854 $318 $1,536 S2,344 $480 $1,864 $1,648 $296 $1,352 S856 $102 S754 s Cost of Capital S82 S88 $103 $125 $91 $39 EVA $171 $200 $223 S333 $198 $208 ROIC WACC Spread 20 75 6 00 14 75 22 14 6 00 16 14 21 22 6 00 15 22 24 57 6 00 18 57 21 37 6 00 15 37 32 76 7 00 25 76

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12  (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in 2019, what would you say about the firm's performance in 2019  Estimations of EVA (S MILLIONS) December December December December 2016 2017 2018 2019 $253 $288 $326 S458 Average 2016 2018 $289 SW Airline 2019 $247 NOPAT Operating Assets Non Interest Bearing Liab  INVESTED CAPITAL $1,488 $269 $1,219 $1,602 $301 $1,301 $1,854 $318 $1,536 S2,344 $480 $1,864 $1,648 $296 $1,352 S856 $102 S754 s Cost of Capital S82 S88 $103 $125 $91 $39 EVA $171 $200 $223 S333 $198 $208 ROIC WACC Spread 20 75  6 00  14 75  22 14  6 00  16 14  21 22  6 00  15 22  24 57  6 00  18 57  21 37  6 00  15 37  32 76  7 00  25 76  12  (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in 2019, what would you say about the firm's performance in 2019  Estimations of EVA (S MILLIONS) December December December December 2016 2017 2018 2019 $253 $288 $326 S458 Average 2016 2018 $289 SW Airline 2019 $247 NOPAT Operating Assets Non Interest Bearing Liab  INVESTED CAPITAL $1,488 $269 $1,219 $1,602 $301 $1,301 $1,854 $318 $1,536 S2,344 $480 $1,864 $1,648 $296 $1,352 S856 $102 S754 s Cost of Capital S82 S88 $103 $125 $91 $39 EVA $171 $200 $223 S333 $198 $208 ROIC WACC Spread 20 75  6 00  14 75  22 14  6 00  16 14  21 22  6 00  15 22  24 57  6 00  18 57  21 37  6 00  15 37  32 76  7 00  25 76

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12. (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in

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