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2021 b. Zorro Sdn Bhd has the following information: 2020 Capital Structure (Equity:Debt) 50:50 Cost of equity 10 Cost of Debt 5 Number of shares
2021 b. Zorro Sdn Bhd has the following information: 2020 Capital Structure (Equity:Debt) 50:50 Cost of equity 10 Cost of Debt 5 Number of shares in million 40 Book value of equity in million RM250 EBIT in million 290 Tax Rate 20% Total Supplied Capital in million RM1,800 Price per share RMIO 60:40 12 5 40 RM200 260 20% RM1,500 RM13 Zorro's management seeks your help to advice on the value created in the year 2020 and 2021. Calculate i. Market Value of equity (2 marks) ii. Market Value Added (2 marks) Net Operating Profit After Tax (NOPAT) (2 marks) iv. Cost of capital (in RM) (6 marks) Economic Value added (EVA) (4 marks) vi. Comment whether the company has created value to shareholders. (3 marks) V
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