Managers' performance is evaluated using measures such as Market Value Added or MVA = Difference between market value and book value of a firm's common equity; similarly, for Economic Value Added, EVA = Estimate of a business' true economic profit for a given year. An MS-Excel file containing D'Leon company's financial statements is uploaded in this discussion board. This company undertook a major expansion in 2017. Download the excel file and read the description of the question in the "Sheet 1". Then you need to open the "Sheet2" and go over the financial statements of the company. On the same sheet2, you need to work on Part A and Part B that are located at the end (scroll down) of the Statement of Cash Flows. Check the note below on how to use the excel file. The lecture note has formulas and explanations on how to find the following indicators. 1. What effect did the expansion have on after-tax operating income, net operating working capital (NOWC), and net income? Calculate and show it in the excel file. 2. What effect did the company's expansion have on its free cash flow? Calculate FCF for 2018 and show it in the excel file. Did you get a positive or negative FCF? 3. Calculate the firm's MVA using 2017 and 2018 data and show it in the excel file. Managers' performance is evaluated using measures such as Market Value Added or MVA = Difference between market value and book value of a firm's common equity; similarly, for Economic Value Added, EVA = Estimate of a business' true economic profit for a given year. An MS-Excel file containing D'Leon company's financial statements is uploaded in this discussion board. This company undertook a major expansion in 2017. Download the excel file and read the description of the question in the "Sheet 1". Then you need to open the "Sheet2" and go over the financial statements of the company. On the same sheet2, you need to work on Part A and Part B that are located at the end (scroll down) of the Statement of Cash Flows. Check the note below on how to use the excel file. The lecture note has formulas and explanations on how to find the following indicators. 1. What effect did the expansion have on after-tax operating income, net operating working capital (NOWC), and net income? Calculate and show it in the excel file. 2. What effect did the company's expansion have on its free cash flow? Calculate FCF for 2018 and show it in the excel file. Did you get a positive or negative FCF? 3. Calculate the firm's MVA using 2017 and 2018 data and show it in the excel file
