b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent year.

Additional Input Data

Stock price per share

$65.00

# of shares (in thousands)

15,000

After-tax cost of capital

8.0%

Market Value Added

MVA =

Stock price

x

# of shares

-

Total common equity

MVA =

x

-

MVA =

-

MVA =

Economic Value Added

EVA =

NOPAT

-

(Operating Capital

x

After-tax cost of capital)

EVA =

-

x

EVA =

-

EVA =