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La Vista, Inc. had the following summary financial data for the current year and the next year: Balance Sheet Assets 2020 $ 2021 $ $
La Vista, Inc. had the following summary financial data for the current year and the next year: Balance Sheet Assets 2020 $ 2021 $ $ Liabilities and Stockholders' Equity 2020 $ 2021 $ Operating Assets (OA) 15,000 18,500 Operating Liabilities (OL) 5,000 6,500 Financial Assets (FA) 1.000 1.000 Financial Obligation (FO) 6,000 5.000 Common Stockholders' Equity (CSE) 5.000 8.000 Total Assets 16,000 19,500 Total Liabilities and Stockholders' Equity 16,000 19,500 Income Statement Items 2020 $ 202 $ Operating Revenue 20,000.00 22,900.00 Less Operating Costs 12,500.00 13,100.00 Operating Profit (EBIT) 7,500.00 9,800.00 Add Financial Income (FI) 30.00 30.00 Less Financial Expense (FE) 900.00 750.00 Net Financial Expense (NFE) 870.00 720.00 Earnings Before Tax (EBT) 6,630.00 9,080.00 Less Tax @ 23% 1,5249 2,088.4 Net Income 5.105.1 6,991.6 Short-term borrowing rate = 10%; Interest rate on financial obligations = 15% . Calculate the following: . (i) Basic Earning Power: EBIT = Net Operating Assets (NOA) . (ii) Return on Invested Capital (ROIC) = NOPAT + NOA . (iii) Equity Multiplier = Total Assets + Stockholders' Equity . (iv) RNOA: (V) ROCE; (vi) FLEV: (vii) NBC or NNEP: (viii) SPREAD: (ix) ATO or NOAT; and (x) PM or NOPM Prove that ROCE = RNOA + FLEV (RNOA - NBC)
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