For the current year, Mo-Z Manufacturing estimates that its Return on Invested Capital (ROIC) is 9% and its Weighted Average Cost of Capital (WACC) is 11%. (6 points each)

a. Do you expect Mo-Zs Economic Value Added (EVA) to be positive or negative or is it ambiguous? Explain.

b. Do you expect Mo-Zs Market Value Added (MVA) to be positive or negative or is it ambiguous? Explain.

c. Is the proper focus of management EVA, MVA, profit, growth, or some other measure? Explain.