Laiho Industries: Balance Sheets as of December 31 (thousands of dollars)
	2021			2020

Cash	$	102,539		$	88,620
Accounts receivable		104,635			84,841
Inventories		38,154			34,610
Total current assets	$	245,328		$	208,071
Net fixed assets		65,425			42,583
Total assets	$	310,753		$	250,654
Accounts payable	$	30,058		$	22,790
Accruals		29,276			21,509
Notes payable		18,114			15,204
Total current liabilities	$	77,448		$	59,503
Long-term debt		73,070			62,270
Total liabilities	$	150,518		$	121,773
Common stock		98,500			86,000
Retained earnings		61,735			42,881
Total common equity	$	160,235		$	128,881
Total liabilities and equity	$	310,753		$	250,654

a) Sales for 2021 were $458,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $8,370,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement.

Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars)

2021

Sales	$
Operating costs excluding depreciation and amortization
EBITDA
Depreciation and amortization
EBIT	$
Interest
EBT	$
Taxes (25%)
Net income	$
Common dividends	$
Addition to retained earnings	$

b) Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year.

Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars)
	Common Stock			Retained Earnings			Total Stockholders' Equity
Balances, December 31, 2020		$			$			$
Common stock issue
2021 Net income
Cash dividends
Addition to retained earnings
Balances, December 31, 2021		$			$			$

Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars)
	2021
Operating Activities
Net income	$
Depreciation and amortization
Increase in accounts payable
Increase in accruals
Increase in accounts receivable
Increase in inventories
Net cash provided by operating activities	$
Investing Activities
Additions to property, plant, and equipment	$
Net cash used in investing activities	$
Financing Activities
Increase in notes payable	$
Increase in long-term debt
Increase in common stock
Payment of common dividends
Net cash provided by financing activities	$
Summary
Net increase/decrease in cash	$
Cash at the beginning of the year
Cash at the end of the year	$

c) Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash.

NOWC₂₀₂₀: $

NOWC₂₀₂₁: $

FCF₂₀₂₁: $

d) If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?

If Laiho increased its dividend payout ratio, the firm would pay_____________

corporate taxes and the company's shareholders would pay_______________taxes on the dividends they would receive.

e) Assume that the firm's after-tax cost of capital is 11.5%. What is the firm's 2021 EVA?

$

f) Assume that the firm's stock price is $23 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021?

$