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Problem: A company has the following information for the year just ended (all values below in 5 millions): cash = 50 Accounts payable = 290

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Problem: A company has the following information for the year just ended (all values below in 5 millions): cash = 50 Accounts payable = 290 Marketable securities = 80 Notes payable = 60 Receivables 300 Accruals = 120 Inventories = 320 Current liabilities = 470 Current assets = 750 Long-term debt = 150 Fixed assets 400 Retained earnings = 330 Total assets = 1150 Common stock = 200 EBIT = 100 Tax rate = 30% wacca 10% a) Determine the economic value added. b) Did the market price of this company likely fall or rise in this past year? Briefly explain. go 1 " FE

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