Solve for Market Value Added and Economic Value Added

2010 2009 ASSETS Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment $ 10 0 375 615 $1,000 1,000 2009 $ 15 65 315 415 $ 810 870 LIABILITIES AND EQUITY Amounts payable Notes payable Accruals Tocal current liabilities Long-term bonds Tocal liabilities Preferred stock (400,000 shares) Common stock (50,000,000 shares) Retained carings Total common equity Total liabilities and equity 2010 $ 60 110 140 $ 310 754 $1,064 40 130 766 S 896 $2,000 S 30 60 130 S220 580 S 800 40 130 710 S 840 $1,680 Total assets $2.000 S1,680 2010 2009 $3,000.0 2.6162 $ 383.8 $2,850,0 2,497.0 $ 353,0 Net sales Operating costs excluding depreciation and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Amortization Depreciation and amortization Earnings before interest and taxes (EBIT, or operating income) Less interest Earnings before taxes (EBD) Tases (40%) Net income before preferred dividends Preferred dividends Net income 100.0 00 $ 100.0 $ 283.8 88.0 $ 195.8 78,3 $ 117,5 4.0 $ 113,5 90.0 0.0 S 90.0 S 263.0 60.0 $ 203.0 81.2 S 1218 4.0 $117.8 Additional information: 2009 $53.0 $64.8 2010 $57.5 $56.0 Common Dividends Addition to Retained Earnings Common Stock Price Outstanding Shares (in millions) WACC 23 50 20 50 5% 6%