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Question 60 2016 2015 170 50 190 140 What is the EVA for 2016? 130 200 490 390 Glocal Inc.: December 31: Balance Sheets (Millions of Dollars) Assets 2016 2015 Liabilities and Equity Cash and equivalents 290 300 Accounts Payable Short-term investments 60 50 Notes Payable Accounts Receivable 300 400 Accruals Inventories 350 300 Current Liabilities Total Current Assets 1,000 1,050 Long-Term Bonds Total Liabilities Preferred stock Net Plant and Equipment 1,000 550 Common Stock Retained Earnings Total Common Equity Total Assets 2,000 1,600 Total Liabilities & Equity 600 400 1,090 790 376 30 40 200 170 680 600 372 880 770 2,000 1,600 Income Statement 2016 2015 1,200.0 600.0 340 1,600.0 500.0 50.0 150.0 80.0 100.0 Question 61 900.0 420.0 Net Sales Cost of goods sold except depreciation Depreciation Other operating expenses Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (40%) Net Income before preferred dividends Preferred dividends Net Income available to common stockholders 50.0 60.0 What is the MVA for 2016? 850.0 360.0 144.0 340.0 510.0 216.0 10.0 10.0 -580 500.0 206.0 2016 2015 Additional Information 1,120 Stock Price $100.00 10.00% 40.00% $90.00 12.00% 40.00% WACC 3 4 Tax Rate Preffered Shares Outstanding (millions) Common Shares Outstanding (millions) 20 17 2,000

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