A traditional (ratio-based) financial statement analysis, which relies almost exclusively on book value-based accounting information cannot directly assess the relationship between a company's financial performance and shareholder wealth (as measured by the market price of the firm's common stock). To address this deficiency, Stern Stewart & Company developed two additional performance indicators: Market Value Added (MVA) and Economic Value Added (EVA). The MVA measures the amount of wealth generated by the firm since it was created, while the EVA measures the amount of shareholder wealth that the firm's management has added to the firm's value during a period of time. If the EVA is positive, then management has added value, while a negative value indicates that the firm's managers reduced the firm's value and shareholders might have eamed more value by investing in some other investment with the same level of risk The EVA metric effectively measures the amount of shareholder wealth that the firm's management has during a specific period of time. A EVA value indicates that the firm's managers have reduced the firm's value, and shareholders might have earned more value by investing in some other investment with the same risk level. Consider the following case: Last year, Jackson Tires reported net sales of $40 million and total operating costs (including depreciation) of $26 million. It had $75 million or Investor-supplied capital, with an after-tax cost of 10%. If the company's tax rate is 40%, how much value did its management create or lose for Tackson Tire during the year? O $0.900 million 537 500 million $16.500 million 50.270 million According to Jackson Tre balance sheet, the firm has 5120 million of total common equity (common stock plus retained earning) and 15 million shares of common stock outstanding, the company's current stock price is $35.00, then what is Jackson The current market value added (MVA)? 4 milion 45 million 5524