Someone please answer this question for me. Its pretty straightforward mostly just filling in the blanks. Thank you so much!
Asher, your newly appointed boss, has tasked you with evaluating the following financial data for Galaxy Corp. to determine how Galaxy's value has changed over the past year. The investment firm for which you work will make a positive (or "buy") recommendation to its investing clients if Galax) value has increased over the past year, a neutral (or "hold") recommendation if the value has remained constant, or a negative (or "sell") recommendation if the value has decreased. He has recommended that you use several metrics to ascertain how the firm's value has changed, and has provided you with the following income statement and balance sheet. Assignment - Arrontino for Finanrial Manage Ch 06: Assignment - Accounting for Financial Management - Balance Sheet December Liabilities and Equity: Accounts $149,625$142,500 payable AccrualsNotes97,256209,47592,625199,500 payable Total \$456,356 \$434,625 current liabilities Long-term 192,019182,875 debt Total \$648,375 \$617,500 liabilities Common 69,825 66,500 stock ( $1 par) Retained 279,300 266,000 earnings \begin{tabular}{lll} Total equity & $349,125 & $332,500 \\ \hline Total & $997,500 & $950,000 \end{tabular} liabilities and equity Shares 69,82566,500 outstanding Weighted 7.98% 7.30% average cost of capital Company Growth and Performance Metrics Using the change in Galaxy's EVA as the decision criterion, which type of investment recommendation should you make to your clients? A buy recommendation A sell recommendation A hold recommendation Which of the following statements are correct? Check sll that apply. Galaxy's NCF is calculated by adding its annual interest expense to the corresponding year's net income. The percentage change in Galaxy's MVA indicates that its management hes increased the firmis value. An increase in the number of common shares outstanding must increase the market value of the firm's equity. Other things remaining constant, Galaxy's EVA will increase when its Rotc exceeds its WACC. For any given year, one way to compute Galaxy's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital