Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2018 $102,850 103,365 38,444 $244,659 67,165 $311,824 $ 30,761 30,477 16,717 $ 77,955 76,264 $154,219 100,000 57,605 $157,605 $311,824 2017 $ 89,725 85,527 34,982 $210,234 42,436 $252,670 $ 23,109 22,656 14,217 $ 59,982 63,914 $123,896 90,000 38,774 $128,774 $252,670
Problem 19: Laiho Industries’s 2017 and 2018 balance sheets (in thousands of dollars are shown).
Please show all work, and if using Excel please show the Excel sheet and all work!! All work includes showing formulas and how you got each part of the formula.
a. Sales for 2018 were $455,150,000, and EBITDA was 15% of sales. Furthermore,
b. Construct the statement of
c. Calculate 2017 and 2018 net operating working capital (NWOC) and 2018
d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company’s shareholders?
(Answer part D in full, complete sentences)
e. Assume the firm’s after-tax cost of capital is 10.5%. What is the firm’s 2018 EVA?
f. Assume that the firm’s stock price is $22 per share and that at year-end 2018 the firm has 10 million shares outstanding. What is the firm’s MVA at year-end 2018?
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