Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheets: 2020 2019 Cash and equivalents $85 $100 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $535 Net plant and equipment

image text in transcribedimage text in transcribed

Balance Sheets: 2020 2019 Cash and equivalents $85 $100 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $535 Net plant and equipment 2,300 1,590 Total assets $3,050 $2,125 Accounts payable $85 $150 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 400 1,000 Total common equity $1,625 $2,225 Total liabilities and equity $2,125 $3,050 Income Statements: 2020 2019 $2,285 $1,585 Sales Operating costs excluding depreciation 1,250 1,000 $1,035 $585 EBITDA Depreciation and amortization 100 75 $510 EBIT $935 63 Interest 46 $464 EBT $872 Taxes (25%) 218 116 Net income $654 $348 Dividends paid $54 $48 Addition to retained earnings $600 $300 Shares outstanding 100 100 Price $27.00 $24.50 WACC 10.00% Using the financial statements above, what is Rosnan's 2020 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest dollar $ Using the financial statements given earlier, what is Rosnan's 2020 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheets: 2020 2019 Cash and equivalents $85 $100 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $535 Net plant and equipment 2,300 1,590 Total assets $3,050 $2,125 Accounts payable $85 $150 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 400 1,000 Total common equity $1,625 $2,225 Total liabilities and equity $2,125 $3,050 Income Statements: 2020 2019 $2,285 $1,585 Sales Operating costs excluding depreciation 1,250 1,000 $1,035 $585 EBITDA Depreciation and amortization 100 75 $510 EBIT $935 63 Interest 46 $464 EBT $872 Taxes (25%) 218 116 Net income $654 $348 Dividends paid $54 $48 Addition to retained earnings $600 $300 Shares outstanding 100 100 Price $27.00 $24.50 WACC 10.00% Using the financial statements above, what is Rosnan's 2020 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest dollar $ Using the financial statements given earlier, what is Rosnan's 2020 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

The Economics Of Money Banking And Finance

Authors: Peter Howells, Keith Bain

2nd Edition

0273651080, 978-0273651086

More Books

Students also viewed these Finance questions