Question

FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35,000 30,000 Inventories 34,420 27,000 Total current assets $ 84,420 $ 71,000 Net plant and equipment 52,000 49,000 Total assets $136,420 $120,000 Liabilities and Equity Accounts payable $ 10,300 $ 9,000 Accruals 7,300 6,000 Notes payable 7,000 5,100 Total current liabilities $ 24,600 $ 20,100 Long-term bonds 15,000 15,000 Total liabilities $ 39,600 $ 35,100 Common stock (4,000 shares) 50,000 50,000 Retained earnings 46,820 34,900 Common equity $ 96,820 $ 84,900 Total liabilities and equity $136,420 $120,000 Income Statement for Year Ending December 31, 2016 Sales $206,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $ 46,000 Depreciation & amortization 6,000 EBIT $ 40,000 Interest 900 EBT $ 39,100 Taxes (40%) 15,640 Net income $ 23,460 Dividends paid 11,540 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. What was net operating working capital for 2015 and 2016? 2015 $ million 2016 $ million What was Arlington's 2016 free cash flow? $ million Construct Arlington's 2016 statement of stockholders' equity. Common Stock Retained Earnings Total Stockholders' Equity Shares Amount Balances, 12/31/15 million $ million $ million $ million 2016 Net Income million Cash Dividends million Addition to retained earnings million Balances, 12/31/16 million $ million $ million $ million What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $ million What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $ million

Answer 1

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