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Homework Ch 6 - Accounting for Fin. Mgmt. 16. 17. Over the years, Janjigian Corporation's stockholders have provided $14,000 of capital, part when they purchased

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Homework Ch 6 - Accounting for Fin. Mgmt. 16. 17. Over the years, Janjigian Corporation's stockholders have provided \$14,000 of capital, part when they purchased new issues of stock and part when they allowed management to retain some of the firm's earnings. The firm now has 1,000 shares of common stock outstanding, and it sells at a price of $42.00 per share. How much value has Janjigian's management added to stockholder wealth over the years, i.e,, what is Janjigian's MVA? Select the correct answer. a. $28,000 b. $27,991 c. $27,982 d. $27,996 e. $27,987 Barnes' Brothers has the following data for the year ending 12/31/2015: Net income =$600; Net operating profit after taxes ( NOPAT) =$700; Total assets =$2,500; Short-term investments =$200; Stockholders equity =$1,800; Total debt =$700; and Total operating capital =$2,025. Barnes' weighted average cost of capital is 10%. What is its economic yalue added (EVA)? Select the correct answer. a. $503.50 b. 5494.50 c. $506.50 d. $500.50 e. $497.50

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