Answer all five

$s.35 million, depreciation of $1.20 million, Vasudevan Inc. recently reported operating income of and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled $0.6 million. How much was its free cash flow, in millions? a. $3.54 b. 3.05 C. $3.81 d. $3.39 e. $4.57 r Vasudevan, Inc in question 5, the company has 2 million shares of common stock outstanding hat is the company's Market Value Added (MVA)? Answer options are provided in whole dollar Fo that t sell for $22 a share. If the company has $49 million of common equity on its balance sheet, a. 5,000,000 b. $15,000,000 c. $11,250,000 d. $5,000,000 e. $13,500,000 Based on your computation of MVA in question 6, you would conclude that: MVA could be improved by issuing new shares of stock. MVA is not a useful metric in these circumstances. Management has done an adequate job managing the funds entrusted to it by its investors Management has not generated sufficient value to cover the company's cost of capital. a. b. C. d. Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $33.00 per share. How much value has O'Brien's management added to stockholder wealth over the years, ie., what is O'Brien's MVA? a. $11,050,000 b. $12,350,000 c. $9,750,000 d. $15,600,000 e. $13,000,000 Companies E and P each reported the same earnings per share (EPS), but Company E's stock trades at a higher price. Which of the following statements is CORRECT? a. Company E probably has fewer growth opportunities. b. Company E is probably judged by investors to be riskier. c. Company E must have a higher market-to-book ratio. d. Company E must pay a lower dividend. e. Company E trades at a higher P/E ratio