Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 20182017Cash and
Question:
Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.
Balance Sheets:20182017Cash and equivalents$100$85Accounts receivable275300Inventories375250Total current assets$750$635Net plant and equipment2,0001,490Total assets$2,750$2,125Accounts payable$150$85Accruals7550Notes payable15075Total current liabilities$375$210Long-term debt450290Common stock1,2251,225Retained earnings700400Total liabilities and equity$2,750$2,125
Income Statements:20182017Sales$2,000$1,500Operating costs excluding depreciation1,2501,000EBITDA$750$500Depreciation and amortization10075EBIT$650$425Interest6245EBT$588$380Taxes (40%)235152Net income$353$228Dividends paid$53$48Addition to retained earnings$300$180Shares outstanding180180Price$ 22.73$ 20.23WACC11.00 %
Using the financial statements above, what is Rosnan's 2018 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest cent.
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Using the financial statements given earlier, what is Rosnan's 2018 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest cent.