Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Drop Downs 1.Book, Market, Replacement 2. Maximize,Minimize, Zero 3.Lower, Higher 4. Economic Profit, Accounting profit, net income 5 Net Worth, Net Income, Cash Flow 6
Drop Downs
1.Book, Market, Replacement
2. Maximize,Minimize, Zero
3.Lower, Higher
4. Economic Profit, Accounting profit, net income
5 Net Worth, Net Income, Cash Flow
6 MVA, EVP, EVA
Balance Sheets: 2019 2018 $85 Cash and equivalents Accounts receivable Inventories $100 275 375 300 250 Total current assets $750 $635 2,300 Net plant and equipment Total assets 1,490 $2,125 $3,050 Liabilities and Equity $150 75 Accounts payable Accruals Notes payable Total current liabilities $85 50 75 150 $375 450 $210 290 825 500 1,225 Long-term debt Total liabilities Common stock Retained earnings Common equity Total liabilities and equity 400 1,225 1,000 2,225 $3,050 1,625 $2,125 Income Statements: Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT 2019 $2,285 1,250 $1,035 100 $935 63 $872 218 2018 $1,585 1,000 $585 75 $510 Interest 46 EBT $464 116 Taxes (25%) Net income $654 $348 Dividends paid Addition to retained earnings $54 $600 $48 $300 Shares outstanding Price WACC 110 $22.73 11.00% 110 $20.23 Using the financial statements above, what is Rosnan's 2019 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest cent. Using the financial statements given earlier, what is Rosnan's 2019 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest centStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started