Calculate the economic value added (EVA) and market value added (MVA) for BBCC, assuming that the firm's income tax rate is 40 percent, the weighted average rate of return expected by the suppliers of the firm's capital is 10 percent, and the market price of the firm's stock is $20. There are 1.2 million shares outstanding.

Bob Builder Construction Company (BBCC) is a large firm for kitchen appliance manufacturers. The consolidated income statement and balance sheet ofBBCC are as follows. BBCC Income Statement {December 312 Year! [thousand dollars) 2018 2019 Sales $40,909 $45,000 Cost of Goods Sold $20,909 $23,000 Gross Prot $20,000 $22,000 Selling and Administrative Expenses $11,818 $13,000 Depreciation Expense $2,000 $3,000 Operating Income (EBIT) $6,] 82 $6,000 Interest Expense $400 $412 Earnings before Taxes (EBT) $5,782 $5,588 Income Taxes (@ 40%) $2,313 $2,235 Net Income (NI) $3,469 $3,353 Dividends Paid (@ 21.86%) $758 $733 BBCC Balance Sheet (For the Year Ended December 31, Year) (thousand dollars) 2018 2019 Assets: Cash $2,000 $1,800 Accounts Receivable (net) $6,000 $7,600 Inventory $5,000 $5,220 Plant and Equipment (gross) $26,000 $31,000 Less: Accumulated Depreciation $ 10,000 $1 3,000 Plant and Equipment (net) $16,000 $18,000 Land $1,000 $1,000 Liabilities: Accounts Payable $2,000 $2,600 Notes Payable $3,000 $3,300 Accrued Expenses $3,000 $3,100 Bonds Payable $4,000 $4,000 Stockholders' Equity: Common Stock $4,000 $4,000 Retained Earnings $14,000 $16,620