Table 1 A B $ Assets 80,000 $ $ 150,000 90,000 110,000 62,000 30,000 18,000 Assets including PPE 54,000 Cash + AR + Inventory 20,000 Liabilities 48720 Equity ? 87200 ? 45,000 ? 14,600 27,000 30000 Research & Development Training Expenses 8900 10200 16400 Sales 85400 87000 85200 Cogs & Operating expenses Depreciation EBIT Tax Net income 45875 20000 19,525 30% 13,668 47650 20000 43450 25% 55,400 54200 20000 22360 20% 25,840 B . Cost of equity 9% 8% 6.5% Cost of debt 5.5% 4.5% 3.5 Assets = Labilities + Equity Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A,B and C. The initial investment was $65000 Required 1. Carry out a Dupont Analysis to show what has contributed to the ROE of the company [profitability, efficiency; financial leverage) 2. Calculate the WACC of the company 3. Calculate the EVA of year A,B,C. 4. Calculate the residual income of the three companies Table 1 A B $ Assets 80,000 $ $ 150,000 90,000 110,000 62,000 30,000 18,000 Assets including PPE 54,000 Cash + AR + Inventory 20,000 Liabilities 48720 Equity ? 87200 ? 45,000 ? 14,600 27,000 30000 Research & Development Training Expenses 8900 10200 16400 Sales 85400 87000 85200 Cogs & Operating expenses Depreciation EBIT Tax Net income 45875 20000 19,525 30% 13,668 47650 20000 43450 25% 55,400 54200 20000 22360 20% 25,840 B . Cost of equity 9% 8% 6.5% Cost of debt 5.5% 4.5% 3.5 Assets = Labilities + Equity Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A,B and C. The initial investment was $65000 Required 1. Carry out a Dupont Analysis to show what has contributed to the ROE of the company [profitability, efficiency; financial leverage) 2. Calculate the WACC of the company 3. Calculate the EVA of year A,B,C. 4. Calculate the residual income of the three companies