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Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance...

Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.

Balance Sheets:
2013 2012
Cash and equivalents $100   $85  
Accounts receivable 275   200  
Inventories 375   250  
      Total current assets $750   $635  
Net plant and equipment 2,000   1,490  
Total assets $2,750   $2,125  
Accounts payable $150   $85  
Accruals 75   50  
Notes payable 150   75  
      Total current liabilities $375   $210  
Long-term debt 450   290  
Common stock 1,225   1,225  
Retained earnings 700   400  
Total liabilities and equity $2,750   $2,125  


Income Statements:
2013 2012
Sales $2,000   $1,500  
Operating costs excluding depreciation 1,250   1,000  
EBITDA $750   $500  
Depreciation and amortization 100   75  
EBIT $650   $425  
Interest 62   45  
EBT $588   $380  
Taxes (40%) 235   152  
Net income $353   $228  
Dividends paid $53   $48  
Addition to retained earnings $300   $180  
Shares outstanding 120    120   
Price $ 22.73    $ 20.23   
WACC 11.00 %     


Using the financial statements above, what is Rosnan's 2013 market value added (MVA)? Round your answer to the nearest dollar. Do not round intermediate calculations.

$

Using the financial statements given earlier, what is Rosnan's 2013 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations.

$

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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