Refer to the exam spreadsheet: Are Tom and Henry's shareholders satisfied with Tom and Henry's performance over 2021? O a. Not really, the total return (capital gain plus dividend yield), was slightly below the required return O b. Yes! Apart from booking a ROIC > WACC, they invested in many positive NPV projects, which is reflected in their stockprice O c. Absolutely not! Their stockprice went down, while the rest of the market went up considerably O d. Yes, absolutely, they booked a ROE of 18%, and paid a dividend of 2.70 per share O e. Yes, for sure, their ROIC was more than twice their WACC, implying that T&H made an economic profit (a positive Economic Value Added, "EVA") O f. No, because their debt-ratio went up and their current ratio deteriorated significantly Note: There are two sheets in this workbook. See the "Alphabet and Amazon" tab below Hint: check whether Tom and Henry's paid any dividends during 2021. Tom & Henry's Balance Sheet, December 31st 2020 (in thousands of ) Tom & Henry's Income Statement for 2021 (in thousands of ) Tom & Henry's Balance Sheet, December 31st 2021 (in thousands of ) Cash 458 Acc. Payable 443 Sales Accounts Receivable 1 267 Tax Payable 334 CoGS 18 545 (8 622) Cash 340 Acc. Payable 560 Accounts Receivable 1 672 Tax Payable 421 Inventory 1 167 Bank loans (short term) 6 180 Gross Profit 9 923 Inventory 1 463 Bank loans (short term) 7 480 Prepaid Rent 135 Total Liabilities 6 957 SG&A (5 995) Prepaid Rent 135 Total Liabilities 8 461 Short Term Assets 3 027 Common Stock 174 Depreciation (1 808) Short Term Assets 3 610 Common Stock 174 Equipment (gross) 16 748 Add. Paid-in Capital 5 527 Operating Profit 2 120 Equipment (gross) 20 326 Add. Paid-in Capital 5 527 - accum. depreciation (4 479) Retained Earnings 2 638 Interest (252) - accum. depreciation (6 287) Retained Earnings 3 487 Equipment (net) 12 269 Owner's Equity 8 339 Taxable Income 1 868 Equipment (net) 14 039 Owner's Equity 9 188 Total Assets 15 296 Total Liab.+ O.E. 15 296 Taxes Net Income (361) 1 507 Total Assets 17 649 Total Liab.+ O.E. 17 649 Number of shares outstanding Stock price December 31st 2020 Stock price December 31st 2021 2435 602 12,32 12,63 Tom and Henry's Beta Risk free rate Equity Premium 0,9 0,2% 6% T&H's average cost of debt during 2021 4% Tom and Henry's Tax rate 23%