CoursHeroTranscribedText: C. Return on equity = 18 percent Required rate of return on equity = 12 percent Beginning book value of equity = 630.00 Calculate residual income. 7. Jim Martin is using economic value added (EVA) and market value added (MVA) to mea- sure the performance of Sundanci. Martin uses the fiscal year 2000 information below for his analysis. . Adjusted net operating profit after tax (NOPAT) is $100 million. . Total capital is $700 million (no debt). . Closing stock price is $26. . Total shares outstanding is 84 million. . The cost of equity is 14 percent. boodilsalif side bar Calculate the following for Sundanci. Show your work. A. EVA for fiscal year 2000. B. MVA as of fiscal year-end 2000. 8. Protected Steel Corporation (PSC) has a book value of $6 per share. PSC is expected to earn $0.60 per share forever and pays out all of its earnings as dividends. The required rate of return on PSC's equity is 12 percent. Calculate the value of the stock using the following: A. Dividend discount model. B. Residual income model. 9. Notable Books (NB) is a family controlled company that dominates the retail book mar- ket. NB has book value of $10 per share, is expected to earn $2.00 forever, and pays out all of its earnings as dividends. Its required return on equity is 12.5 percent. Value the stock of NB using the following: A. Dividend discount model. B. Residual income model. 10. Simonson Investment Trust International (SITI) is expected to earn $4.00, $5.00, and SITT will pay annual dividends of $2.00, $2.50, and $20.50