The financial statements reflect historical data, but managers' performance must be evaluated on the basis of values. To provide this information, financial analysts have developed two measures: Market Value Added (MVA) and Economic Value Added (EVA). Market Value Added represents the difference between the money stockholders have invested in the firm versus the cash they could receive if the firm were sold. The equation for MVA is: MVA=(SharesoutstandingStockprice)Totalcommonequity Shareholder wealth is maximized when this difference is management is doing for its shareholders. Economic Value Added is sometimes called ' EVA = NOPAT - (Total net operating capital)(WACC) The because EVA has a deduction for the cost of equity. Positive EVA on an annual basis helps ensure can be determined for divisions as well as for the firm as a whole, so it is useful for EVA differs from that MVA is also positive. ", and it is closely related to MVA. The equation for EVA is: establishing reasonable compensation for divisional managers as well as top company officers. Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Income Statements: Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest Do not round intermediate calculations. Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollai Do not round intermediate calculations. Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations