Question
Kindly include step bu step explanation Using finance yahoo, based upon CAT's online annual financial statements, compute CAT's EVA and ROIC of the most recent
Kindly include step bu step explanation
Using finance yahoo, based upon CAT's online annual financial statements, compute CAT's EVA and ROIC of the most recent calendar year (assuming CAT's WACC input is given as 10%). Do CAT's EVA and ROIC look good that year?
Additional information:
1) When computing EVA & ROIC, you need to know the WACC amount as an input. Here we assume/pretend that WACC is given as 10% per year (hypothetical guessing only, not for real).
2) When computing FCF, you need the actual annual tax rate as an input. You can look at the firm's annual income statement, and then estimate the applicable average tax rate, by comparing each year's "Tax Provision" against "Pretax Income".
3) When computing FCF, you need to calculate the operating capital (both current and non-current) of each year and then compare for the increase in OC year-by-year. What kinds of long-term (i.e., non-current, fixed) assets are "operating" related?
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