Sand Technologies: Income Statements for Year Ending December 31 (in thousands) 2019 2018 Sales $945,000 $880,000 Expenses excluding depreciation and amortization 822,150 730,400 EBITDA $122,850 $149,600 Depreciation and amortization 32,400 31,500 EBIT $90,450 $118,100 Interest Expense 10,470 8,600 EBT $79,980 $109,500 Taxes (40%) 31,992 43,800 Net income $47,988 $65,700 Common dividends $38,050 $55,390 Addition to retained earnings $9,938 $10,310 Sand Technologies: December 31 Balance Sheets (in thousands) Assets 2019 2018 Cash and cash equivalents $53,400 $44,685 Short-term investments 8,500 12,450 Accounts Receivable 283,500 275,880 Inventories 141,750 135,000 Total current assets $487,150 $468,015 Net fixed assets 425,600 401,400 Total assets $912,750 $869,415 Liabilities and equity Accounts payable $94,500 $90,000 Accruals 46,850 42,750 Notes payable 32,362 54,565 Total current liabilities $173,712 $187,315 Long-term debt 194,500 147,500 Total liabilities $368,212 $334,815 Common Stock 444,600 444,600 Retained Earnings 99,938 90,000 Total common equity $544,538 $534,600 Total liabilities and equity $912,750 $869,415 Key Input Data Tax rate 40% Net operating working capital -- NOWC 2019 NOWC = Operating current assets - Operating current liabilities 2019 NOWC = - 2019 NOWC = 2018 NOWC = Operating current assets - Operating current liabilities 2018 NOWC = - 2018 NOWC = Total net operating capital -- OC 2019 OC = NOWC + Net Fixed assets 2019 OC = + 2019 OC = 2018 OC = NOWC + Net Fixed assets 2018 OC = + 2018 OC = Net operating profit after taxes 2019 NOPAT = EBIT x ( 1 - Tax rate ) 2019 NOPAT = x 2019 NOPAT = Operating Cash Flow (OCF) 2019 OCF= NOPAT + Depreciation 2019 OCF= + 2019 OCF= Free cash flow 2019 FCF = NOPAT - Net investment in operating capital 2019 FCF = - 2019 FCF = Return on invested capital 2019 ROIC = NOPAT / Total net operating capital -- 2019 OC 2019 ROIC = / 2019 ROIC = Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $48.50 per share, and the after-tax cost of capital was 6%. Calculate EVA and MVA for the most recent year.

Additional Input Data Stock price per share $48.50 # of shares (in thousands) 15,000 After-tax cost of capital 6.0% Market Value Added MVA = Stock Price x # of shares - 2019 Total common equity x - MVA = Economic Value Added EVA = NOPAT - (Operating Capital -- 2019 OC x After-tax cost of capital -- WACC) - x - EVA =