Laiho Industries: Balance Sheets as of December 31 (thousands of dollars)
	2021			2020
Cash	$	107,580		$	89,420
Accounts receivable		101,321			83,531
Inventories		37,299			33,585
Total current assets	$	246,200		$	206,536
Net fixed assets		69,354			43,036
Total assets	$	315,554		$	249,572
Accounts payable	$	30,549		$	22,270
Accruals		32,094			23,682
Notes payable		16,814			13,974
Total current liabilities	$	79,457		$	59,926
Long-term debt		75,843			62,993
Total liabilities	$	155,300		$	122,919
Common stock		103,500			91,000
Retained earnings		56,754			35,653
Total common equity	$	160,254		$	126,653
Total liabilities and equity	$	315,554		$	249,572

Sales for 2021 were $463,650,000, and EBITDA was 16% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $9,356,000, the corporate tax rate was 25%, and Laiho pays 46.25% 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	$

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

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: $

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

more/less the same amount of

corporate taxes and the company's shareholders would pay

more/less the same amount of

taxes on the dividends they would receive.

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

$ thousand

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?

$ thousand