Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance Sheets: 2013 2012 Cash and equivalents $100 $95 Accounts

image text in transcribed

Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance Sheets: 2013 2012 Cash and equivalents $100 $95 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 5635 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,125 $150 75 150 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $375 450 1,225 700 585 50 75 S210 290 1,225 400 $2,125 $2,750 Income Statements: 2013 2012 $1,500 1,000 $2,000 1,250 $750 100 $500 75 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income $650 62 $425 45 $588 235 $380 152 $353 S228 Dividends paid Addition to retained earnings $53 $300 548 $180 Shares outstanding Price 110 $ 20.83 12.00% 110 $ 18.33 WACC Using the financial statements above, what is Rosnan's 2013 market value added (MVA)? Round your answer to the nearest dollar. Do not round intermediate calculations. Show All Feedback Using the financial statements given earlier, what is Rosnan's 2013 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

HBR Guide To Finance Basics For Managers

Authors: Harvard Business Review

1st Edition

1422187306, 978-1422187302

Students also viewed these Finance questions