Water and Power Co. Income Statement January 1 - December 31, Year 2 Which of the following statements are correct? Check all that appiy. For any given year, one way to compute Water 8 Power's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital. Investor-supplied operating capital is recorded as accounts payable, accruals, and short-term investments. Water a Power's NCF is caiculated by adding its annual depreciation and amortization expense to the corresponding year's EBtrDA. Water B Power's net income is growing at a rote greater than its sales. This could imply that either its revenues are growing more quickly than its expenses or that management is being effective in managing its costs while achieving the reported growth in sales. Other things remaining constant, either avent should increase the value of the firm. Other things remaining constant, Water a Power's EVA will increaso when its ROIC exceeds its WACC. A sell recommendation A hold recommendation A buy recommendation Taj, your newly appointed boss, has tasked you with evaluating the following financial data for Water and Power Ca. to determine how Water 8 Power'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 Water \& fower's value has increased over the past year, a neutral (or "hold") recommendation if the value has ramained constant, or a negative (or "sedi") 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. Daiance sneex December 31, Year 2 To facilitate your analysis, camplete the following table, and use the results to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a doillar value is below $100, round your answer to two decimal places. If your answer is negative use a minus ( ) sign.)