Fill out all blanks and answer 2 questions at the end.

11. The calculation of a firm's Market Value Added (MVA) and Economic Value Added (EVA) Asher, your newly appointed boss, has tasked you with evaluating the following financial data for Allied Biscuit Co. to determine how Allied Biscuit's value has changed over the past year. The investment firm for which you work will make a positive (or "buy") recommendation to its investing clients and he has provided you with the following income statement and balance sheet. Allied Biscuit Co. Income Statement January 1 - December 31, Year 2 Allied Biscuit Co. Balance Sheet December 31, Year 2 To facilitate your analysis, complete the following table, and use the results to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a dollar value is below $100, round your answer to two decimal places. If your answer is negative use a minus (-) sign.) Using the change in Allied Biscuit's EVA as the decision criterion, which type of investment recommendation should you make to your clients? A hold recommendation A sell recommendation A buy recommendation Which of the following statements are correct? Check all that apply. Allied Biscuit's NCF is calculated by adding its annual depreciation and amortization expense to the corresponding year's EBITDA. than its expenses or that management is being effective in managing its costs while achieving the reported growth in sales. remaining constant, either event should increase the value of the firm. Investor-supplied operating capital is recorded as accounts payable, accruals, and short-term investments. Other things remaining constant, Allied Biscuit's EVA will increase when its ROIC exceeds its WACC. For any given year, one way to compute Allied Biscuit's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital