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?
Problem 19: Laiho Industries’s 2017 and 2018
Please show all work, INCLUDING FORMULAS AND HOW YOU GOT EACH PIECE OF THE FORMULA.
If using EXCEL, please show where you got any numbers from. For example, for letter E.
e. Assume the firm’s after-tax cost of capital is 10.5%. What is the firm’s 2018 EVA?
EVA= EBIT(1-T)-(Total invested capital x After-tax percentage cost of capital)
How did you find the total invested capital.
I posted this questions numerous times, and it seems that for the last couple questions people are using informatiojn from 2017 and not 2018. Please USE CORRECT INFORMATION. Please also explain why you are using the calculations that you have used.
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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