Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheets: 2 0 1 9 2 0 1 8 Assets Cash and equivalents $ 1 0 0 $ 8 5 Accounts receivable 2 7

Balance Sheets:
20192018
Assets
Cash and equivalents $100 $85
Accounts receivable 275300
Inventories 375250
Total current assets $750 $635
Net plant and equipment 2,3001,490
Total assets $3,050 $2,125
Liabilities and Equity
Accounts payable $150 $85
Accruals 7550
Notes payable 15075
Total current liabilities $375 $210
Long-term debt 450290
Total liabilities 825500
Common stock 1,2251,225
Retained earnings 1,000400
Common equity 2,2251,625
Total liabilities and equity $3,050 $2,125
Income Statements:
20192018
Sales $2,285 $1,585
Operating costs excluding depreciation 1,2501,000
EBITDA $1,035 $585
Depreciation and amortization 10075
EBIT $935 $510
Interest 6346
EBT $872 $464
Taxes (25%)218116
Net income $654 $348
Dividends paid $54 $48
Addition to retained earnings $600 $300
Shares outstanding 9090
Price $31.25 $28.75
WACC 8.00%
Using the financial statements above, what is Rosnan's 2019 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest cent.
$
Using the financial statements given earlier, what is Rosnan's 2019 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest cent.
$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management An Introduction

Authors: Jim McMenamin

1st Edition

0415181623, 9780415181624

More Books

Students also viewed these Finance questions

Question

How many applicants are you interviewing?

Answered: 1 week ago