Laiho Industries’s 2020 and 2021 balance sheets (in thousands of dollars) are shown.

a. Sales for 2021 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $8,583,000, the corporate tax rate was 25%, and Laiho pays 47.25% of its net income as dividends. Given this information, construct the firm’s 2021 income statement.

b. Construct the statement of stockholders’ equity for the year ending December 31, 2021, and the 2021 statement of cash flows.

c. Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash.

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 share holders?

e. Assume that the firm’s after-tax cost of capital is 10.5%. What is the firm’s 2021 EVA?

f. Assume that the firm’s stock price is $22 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm’s MVA at year-end 2021?

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Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) 2021 $102,850 103,365 38,444 $244,659 Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities 67,165 $311,824 $ 30,761 30,477 16,717 $ 77,955 2020 $ 89,725 85,527 34,982 $210,234 42,436 $252,670 $ 23,110 22,656 14,217 $ 59,983