Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the items in the below image below. 1) How do you put this in a retained earnings statement? 2) How do you determine Cash
Given the items in the below image below.
1) How do you put this in a retained earnings statement?
2) How do you determine Cash Flow Statement?
3) How do you calculate Free Cash Flow?
4) How do you calculate ROIC, EVA, and MVA?
From my understanding, here are the formulas:
Free Cash Flow = NOPAT - Increase in Operational Capital
ROIC = NOPAT / Operating Capital
EVA = NOPAT - (WACC*Op. Capital)
Market Value (MVA) = Market Value of Equity - Book value of Equity
Step 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