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A.. NBC, Inc. has EBIT of $2.5 million and a tax rate of 20%. The firm has debt of $3.5 million and common shareholders equity
A.. NBC, Inc. has EBIT of $2.5 million and a tax rate of 20%. The firm has debt of $3.5 million and common shareholders equity of $5 million, as well as an estimated cost of capital of 12%. Calculate NBCs ROIC and EVA.
B. NBC has 1 million common shares outstanding, with a current share price of $6 per share. The market value of the firms debt is almost identical to its book value. Using this information, in addition to that contained in part A, estimate NBCs MVA.
Please solve A and B. Please show work.
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