Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Assets Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Total liabilities 825 500 Common stock 1,225 1,225 Retained earnings 1,000 400 Common equity 2,225 1,625 Total liabilities and equity $3,050 $2,125 Income Statements: 2019 2018 Sales $2,285 $1,585 Operating costs excluding depreciation 1,250 1,000 EBITDA $1,035 $585 Depreciation and amortization 100 75 EBIT $935 $510 Interest 63 46 EBT $872 $464 Taxes (25%) 218 116 Net income $654 $348 Dividends paid $54 $48 Addition to retained earnings $600 $300 Shares outstanding 120 120 Price $20.83 $18.33 WACC 12.00% Using the financial statements above, what is Rosnan's 2019 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest cent. $ Using the financial statements given earlier, what is Rosnan's 2019 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest cent. $
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Assets Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Total liabilities 825 500 Common stock 1,225 1,225 Retained earnings 1,000 400 Common equity 2,225 1,625 Total liabilities and equity $3,050 $2,125 Income Statements: 2019 2018 Sales $2,285 $1,585 Operating costs excluding depreciation 1,250 1,000 EBITDA $1,035 $585 Depreciation and amortization 100 75 EBIT $935 $510 Interest 63 46 EBT $872 $464 Taxes (25%) 218 116 Net income $654 $348 Dividends paid $54 $48 Addition to retained earnings $600 $300 Shares outstanding 120 120 Price $20.83 $18.33 WACC 12.00% Using the financial statements above, what is Rosnan's 2019 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest cent. $ Using the financial statements given earlier, what is Rosnan's 2019 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest cent. $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.
| Balance Sheets: | ||
| 2019 | 2018 | |
| Assets | ||
| Cash and equivalents | $100 | $85 |
| Accounts receivable | 275 | 300 |
| Inventories | 375 | 250 |
| Total current assets | $750 | $635 |
| Net plant and equipment | 2,300 | 1,490 |
| Total assets | $3,050 | $2,125 |
| Liabilities and Equity | ||
| Accounts payable | $150 | $85 |
| Accruals | 75 | 50 |
| Notes payable | 150 | 75 |
| Total current liabilities | $375 | $210 |
| Long-term debt | 450 | 290 |
| Total liabilities | 825 | 500 |
| Common stock | 1,225 | 1,225 |
| 1,000 | 400 | |
| Common equity | 2,225 | 1,625 |
| Total liabilities and equity | $3,050 | $2,125 |
| Income Statements: | ||
| 2019 | 2018 | |
| Sales | $2,285 | $1,585 |
| Operating costs excluding depreciation | 1,250 | 1,000 |
| EBITDA | $1,035 | $585 |
| Depreciation and amortization | 100 | 75 |
| EBIT | $935 | $510 |
| Interest | 63 | 46 |
| EBT | $872 | $464 |
| Taxes (25%) | 218 | 116 |
| Net income | $654 | $348 |
| Dividends paid | $54 | $48 |
| Addition to retained earnings | $600 | $300 |
| Shares outstanding | 120 | 120 |
| Price | $20.83 | $18.33 |
| WACC | 12.00% |
Using the financial statements above, what is Rosnan's 2019 market value added (MVA)? Do not round intermediate calculations. Round your answer to the nearest cent.
$
Using the financial statements given earlier, what is Rosnan's 2019 economic value added (EVA)? Do not round intermediate calculations. Round your answer to the nearest cent.
$
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