because wacc is part of solving this using the given information to get to EVA and MVA.

3. Compute EVA and MVA for Tiffany in 2020. Balance Sheet on January 31 (5 millions) Inventory Ace Rec Other Cash 2018 2,254 231 207 1.291 3,983 2019 2,428 245 231 855 3,760 2020 2,464 Inventory 240 Acc Rec 274 Other 897 Cash 3,876 Current Assets Current Assets 991 494 1,027 547 NPPE Other F.A. Total F.A Total Assets 1,485 5,468 2,202 NPPE 583 Other F.A. 2,785 Total F.A. 6,660 Total Assets 1.574 5,333 113 S.T. Debt Accs Payable Other Total C.L. 217 121 202 403 725 351 S.T. Debt 261 Accs Payable 358 Other 970 Total C.L. 388 718 883 601 L.T. Debt Other Total L.T. Common Eq Total L&E 883 612 1,495 3,248 5,468 1,484 3,131 5,333 884 L.T. Debt 1,470 Other 2,354 Total L.T. 3,335 Common Eq 6,660 Total L&E Income Statement for Year Ending January 31 (S millions) 2018 2019 2020 Revenues 4,170 4,442 4,424 Revenues Cost of sales 1,565 1,631 1,662 Cost of sales Gross profit 2,605 2,811 2,762 Gross profit SG&A 1,810 2,021 2,029 SG&A EBIT 795 790 733 EBIT Interest 42 40 39 Interest Other income 8 -7 -4 Other income Taxable income 761 744 690 Taxable income Taxes 390 157 149 Taxes Net Income 370 586 541 Net Income 3. Compute EVA and MVA for Tiffany in 2020. Balance Sheet on January 31 (5 millions) Inventory Ace Rec Other Cash 2018 2,254 231 207 1.291 3,983 2019 2,428 245 231 855 3,760 2020 2,464 Inventory 240 Acc Rec 274 Other 897 Cash 3,876 Current Assets Current Assets 991 494 1,027 547 NPPE Other F.A. Total F.A Total Assets 1,485 5,468 2,202 NPPE 583 Other F.A. 2,785 Total F.A. 6,660 Total Assets 1.574 5,333 113 S.T. Debt Accs Payable Other Total C.L. 217 121 202 403 725 351 S.T. Debt 261 Accs Payable 358 Other 970 Total C.L. 388 718 883 601 L.T. Debt Other Total L.T. Common Eq Total L&E 883 612 1,495 3,248 5,468 1,484 3,131 5,333 884 L.T. Debt 1,470 Other 2,354 Total L.T. 3,335 Common Eq 6,660 Total L&E Income Statement for Year Ending January 31 (S millions) 2018 2019 2020 Revenues 4,170 4,442 4,424 Revenues Cost of sales 1,565 1,631 1,662 Cost of sales Gross profit 2,605 2,811 2,762 Gross profit SG&A 1,810 2,021 2,029 SG&A EBIT 795 790 733 EBIT Interest 42 40 39 Interest Other income 8 -7 -4 Other income Taxable income 761 744 690 Taxable income Taxes 390 157 149 Taxes Net Income 370 586 541 Net Income