Byrd Lumber has 2 million shares of stock outstanding and its stock price is $15 a share. On the balance sheet the company has $40 million worth of common equity. What is the company's Market Value Added (MVA)? a. -$80,000,000 b. -$20,000,000 c. -$10,000,000 d. $20,000,000 e. $80,000,000 10. Assume that a company currently depreciates its fixed assets over 10 years. Which of the following would occur if a tax law change forced the company to depreciate its fixed assets over 7 years instead? a. The company's tax payment would increase. b. The company's cash position would decrease. c. The company's net income would decrease. d. None of the statements above are correct. 11. Coolidge Cola is forecasting the following income statement: Sales Operating costs excluding depreciation Depreciation Operating income (EBIT) Interest expense Taxable income (EBT) Taxes (40%) Net income $30,000,000 20,000,000 5,000,000 $5,000,000 2.000.000 $ 3,000,000 1.200.000 $ 1.800.000 Assume that, with the exception of depreciation, all other non-cash revenues and expenses sum to zero. Congress is considering a proposal which will allow companies to depreciate their equipment at a faster rate. If this provision were put in place, Coolidge's depreciation expense would be $8,000,000 (instead of $5,000,000). This proposal would have no effect on the economic value of the company's equipment, nor would it affect the company's tax rate, which would remain at 40 percent. If this proposal were to be implemented, what would be the company's net income? a. $0 b. $2,000,000 c. $6,800,000 d. $8,000,000 e. $9,800,000