Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance Sheets: 2013 2012 Cash...

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Quantitative Problem: Rosnan Industries' 2013and 2012 balance sheets and income statements are shown below.
Balance Sheets:
2013 2012
Cash and equivalents $100   $85
Accounts receivable 275   200
Inventories 375   250
      Total current assets $750   $635
Net plant and equipment 2,000   1,490
Total assets $2,750   $2,125
Accounts payable $150   $85
Accruals 75   50
Notes payable 150   75
      Total currentliabilities $375   $210
Long-term debt 450   290
Common stock 1,225   1,225
Retained earnings 700   400
Total liabilities and equity $2,750   $2,125

Income Statements:
2013 2012
Sales $2,000   $1,500
Operating costs excluding depreciation 1,250   1,000
EBITDA $750   $500
Depreciation and amortization 100   75
EBIT $650   $425
Interest 62   45
EBT $588   $380
Taxes (40%) 235   152
Net income $353   $228
Dividends paid $53   $48
Addition to retained earnings $300   $180
Shares outstanding 170    170
Price $ 27.78    $ 25.28
WACC 9.00 %
Using the financial statements above, what is Rosnan's 2013market value added (MVA)? Round your answer to the nearest dollar.Do not round intermediate calculations.
=???
Using the financial statements given earlier, what is Rosnan's2013 economic value added (EVA)? Round your answer to the nearestcent. Do not round intermediate calculations.
=???

Answer & Explanation Solved by verified expert

3.8 Ratings (374 Votes)

I 2013 Market value added MVA Market value of stock Book value of equity retained earnings Here i Market value of stock Shares outstanding Market price of stock Market value of See Answer

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Quantitative Problem: Rosnan Industries' 2013and 2012 balance sheets and income statements are shown below.Balance Sheets:20132012Cash and equivalents$100 $85 Accounts receivable275 200 Inventories375 250 Total current assets$750 $635 Net plant and equipment2,000 1,490 Total assets$2,750 $2,125 Accounts payable$150 $85 Accruals75 50 Notes payable150 75 Total currentliabilities$375 $210 Long-term debt450 290 Common stock1,225 1,225 Retained earnings700 400 Total liabilities and equity$2,750 $2,125 Income Statements:20132012Sales$2,000 $1,500 Operating costs excluding depreciation1,250 1,000 EBITDA$750 $500 Depreciation and amortization100 75 EBIT$650 $425 Interest62 45 EBT$588 $380 Taxes (40%)235 152 Net income$353 $228 Dividends paid$53 $48 Addition to retained earnings$300 $180 Shares outstanding170 170 Price$ 27.78 $ 25.28 WACC9.00 % Using the financial statements above, what is Rosnan's 2013market value added (MVA)? Round your answer to the nearest dollar.Do not round intermediate calculations.=???Using the financial statements given earlier, what is Rosnan's2013 economic value added (EVA)? Round your answer to the nearestcent. Do not round intermediate calculations.=???

Balance Sheets:
	2013	2012
Cash and equivalents	$100	$85
Accounts receivable	275	200
Inventories	375	250
Total current assets	$750	$635
Net plant and equipment	2,000	1,490
Total assets	$2,750	$2,125

Accounts payable	$150	$85
Accruals	75	50
Notes payable	150	75
Total currentliabilities	$375	$210
Long-term debt	450	290
Common stock	1,225	1,225
Retained earnings	700	400
Total liabilities and equity	$2,750	$2,125

Income Statements:
	2013	2012
Sales	$2,000	$1,500
Operating costs excluding depreciation	1,250	1,000
EBITDA	$750	$500
Depreciation and amortization	100	75
EBIT	$650	$425
Interest	62	45
EBT	$588	$380
Taxes (40%)	235	152
Net income	$353	$228

Dividends paid	$53	$48
Addition to retained earnings	$300	$180

Shares outstanding	170	170
Price	$ 27.78	$ 25.28
WACC	9.00 %