Using the income statement and balance sheet on the next page answer the following.

1. Assuming there are 20 million shares outstanding, calculate EPS, Dividends per share, Book value per share, NOWC, and net cash flow for Year 0.

2. Assuming a tax rate of 25%, calculate NOPAT and operating cash flows for Year 0.

3. If the price per share of common stock is $35 (shares = 20 million), calculate the MVA for Year 0.

4. a. Find operating capital for Year 0.

b. If the after tax cost of capital is 9%, calculate the EVA for Year 0.

Income Statement

($ millions) Year 0

Revenues 800

Operating Costs 300

Depreciation 100

Amortization 0

EBIT

Interest Expense _

EBT 220

Taxes (25%) ____

Net Income $

Dividends

Add to RE 120

Balance Sheet

Cash $ 100

Receivables 200

Inventories 150

Current Assets 450

Net Fixed Assets 100

Total Assets 550

Accounts Payable 50

Notes Payable 10

Accruals 30

Current Liabilities 90

Bonds 110

Common Stock 150

Retained Earnings ____

Total Liab & Eq $