Problem 19: Laiho Industriess 2017 and 2018 balance sheets (in thousands of dollars are shown).

Using the EXCEL document attached below (MUST USE THIS SHEET WITH INFORMATION LISTED IN COLUMNS AND ROWS) please answer the following questions AND SHOW ALL WORK FOR EACH QUESTION. Must Include ALL formulas for EXCEL and any other applicable work. If not using EXCEL, please show all the work and calculations.

a. Sales for 2018 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firms 2018 income statement.

b. Construct the statement of stockholders equity for the year ending December 31, 2018, and the 2018 statement of cash flows.

c. Calculate 2017 and 2018 net operating working capital (NWOC) and 2018 free cash flow (FCF). Assume the firm has no excess cash.

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 companys shareholders?

(Answer part D in full, complete sentences)

e. Assume the firms after-tax cost of capital is 10.5%. What is the firms 2018 EVA?

f. Assume that the firms stock price is $22 per share and that at year-end 2018 the firm has 10 million shares outstanding. What is the firms MVA at year-end 2018?