Toyota Motors Balance Sheet: Year 2016 2017 2018 2019 2020 2021 2022 Total Assets $ 443,184 $ 457,348 $ 472,154 $ 490,658 $ 566,065 $ 589,563 $ 650,537 Operating Liabilities $ 51,856 $ 51,736 $ 53,349 $ 43,226 $ 49,483 $ 52,493 $ 59,298 255030 $ 391,327 $ 405,612 $ 418,805 $ 447,432 $ 516,582 $ 537,070 $ 591,239 Total Debt $ 174,143 $ 175,887 $ 183,183 $ 194,009 $ 233,269 $ 249,142 $ 277,409 Total Equity and Claims $ 217,184 $ 229,725 $ 235,621 $ 253,423 $ 283,313 $ 287,927 $ 313,830 Total Debt, Equity and Claims $ 391,327 $ 405,612 $ 418,805 $ 447,432 $ 516,582 $ 537,070 $ 591,239 Toyota Motors Income Statement: Year 2016 2017 2018 2019 2020 2021 2022 Total Revenue $ 250,884 $ 267,086 $ 274,779 $ 271,514 $ 247,405 $ 285,268 $ 340,161 Cost of Revenue, Total $ 206,676 $ 217,174 $ 225,289 $ 222,594 $ 203,475 $ 230,980 $ 283,360 Selling, General and Other expense $ 26,077 $ 28,095 $ 30,158 $ 27,109 $ 23,951 $ 27,052 $ 31,663 Operating Income $ 18,131 $ 21,817 $ 19,332 $ 21,811 $ 19,980 $ 27,236 $ 25,138 Given information for Toyota Motors: Cost of Debt for Toyota Motor (from the footnotes to the financial statements) 2.63% Beta for Toyota Motors (from Yahoo or other financial sources) 0.7 Normalized risk free rate of return in the market (observing the 10 rate on government issued securities) 3.00% Equity risk premium (from historical studies of the market) 5.00% Market value of debt (use book or amount disclosed in the footnotes if different) $ 277,409 Number of common shares outstanding 1,609 Market price of the common stock on July 11, 2022 $ 158.42 Market value of equity (number of shares times the stock price) Calculate the required return (weighted average cost of capital) Market Weights Component Weighted Values Cost Cost Debt Equity Required return (weighted average cost of capital)...................................... Calculate the Economic Profit (Economic Value Added) Year 2016 2017 2018 2019 2020 2021 2022 Net Operating Assets $ 391,327 $ 405,612 $ 418,805 $ 447,432 $ 516,582 $ 537,070 $ 591,239 times the required return Required income in dollars Year 2016 2017 2018 2019 2020 2021 2022 Operating Income earned $ 18,131 $ 21,817 $ 19,332 $ 21,811 $ 19,980 $ 27,236 $ 25,138 Less required income Economic profit or (loss) Another way to look at this: Return on invested capital 4.63% 5.38% 4.62% 4.87% 3.87% 5.07% 4.25% Weighted average cost of capital Spread