Question
Mike is using economic value added (EVA) and market value added (MVA) to measure the performance of Bank International. Mike uses the fiscal year 2000
Mike is using economic value added (EVA) and market value added (MVA) to measure the performance of Bank International. Mike uses the fiscal year 2000 information below for his analysis.
- Adjusted net operating profit after tax (NOPAT) is $100 million.
- Total capital is $700 million (no debt).
- Closing stock price is $26.
- Total shares outstanding is 84 million.
- The cost of equity is 14 percent.
Calculate the following for Bank International. Show your work in Excel.
A. EVA for fiscal year 2000.
B. MVA as of fiscal year-end 2000
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
