Taj, 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 Galaxy's 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 he has provided you with the following income statement and balance sheet. To focilitate your analysis, complete the following table, and use the resuits to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a doliar value is below $100, round your answer to two decimal places. If your answer is negative use a minus () Galaxy Corp. Balance Sheet December 31, Year 2 A buy recommendation A sell recommendation A hold recommendation of the following statements are correct? Check all that apply. Galaxy's NCF is calculated by adding its annual interest expense to the corresponding year's net income. 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. An increase in the number of common shares outstanding must increase the market value of the firm's equity. The percentage change in Galaxy's EVA indicates that management has decreased its value. The percentage change in Galaxy's MVA indicates that its management has increased the firm's value. Taj, 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 Galaxy's 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 he has provided you with the following income statement and balance sheet. To focilitate your analysis, complete the following table, and use the resuits to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a doliar value is below $100, round your answer to two decimal places. If your answer is negative use a minus () Galaxy Corp. Balance Sheet December 31, Year 2 A buy recommendation A sell recommendation A hold recommendation of the following statements are correct? Check all that apply. Galaxy's NCF is calculated by adding its annual interest expense to the corresponding year's net income. 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. An increase in the number of common shares outstanding must increase the market value of the firm's equity. The percentage change in Galaxy's EVA indicates that management has decreased its value. The percentage change in Galaxy's MVA indicates that its management has increased the firm's value
