Using the information from 2-12, calculate the: a. Market Value Added in 2015 for Rhodes Corporation. b.
Question:
Using the information from 2-12, calculate the:
a. Market Value Added in 2015 for Rhodes Corporation.
b. Economic Value Added in 2015.
Information from 2-12:
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Transcribed Image Text:
2014 2015 $11,000 $10,000 Sales Operating costs excluding depreciation Depreciation and amortization Earnings before interest and taxes Less interest Pre-tax income Taxes (40%) Net income available to common shareholders Common dividends 9,360 8,500 380 360 1,140 1,260 120 100 1,140 1,040 416 456 $ 624 684 220 200 %24 2015 2014 Assets Cash 550 $ 500 Short-term investments 110 100 Accounts receivable 2,750 2,500 Inventories 1,650 1,500 Total current assets 5,060 4,600 Net plant and equipment 3,850 3,500 Total assets $ 8,910 $ 8,100 Liabilities and Equity Accounts payable $ 1,100 $ 1,000 Accruals 550 500 Notes payable 384 200 Total current liabilities 2,034 1,700 1,000 2,700 Long-term debt 1,100 Total liabilities 3,134 Common stock (120 million shares) 4,312 4,400 Retained earnings 1,464 1,000 Total common equity 5,776 $ 8,910 5,400 Total liabilities and equity $ 8,100 Price per share 60 55 WACC 12% 12% %24 %24
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
a MVA Market Value of Stock Equity capital ...View the full answer
Answered By
Amar Kumar Behera
I am an expert in science and technology. I provide dedicated guidance and help in understanding key concepts in various fields such as mechanical engineering, industrial engineering, electronics, computer science, physics and maths. I will help you clarify your doubts and explain ideas and concepts that are otherwise difficult to follow. I also provide proof reading services. I hold a number of degrees in engineering from top 10 universities of the US and Europe.
My experience spans 20 years in academia and industry. I have worked for top blue chip companies.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Question Posted:
Students also viewed these Business questions
-
Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2010? b. What are the amounts of net...
-
Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2012? b. What are the amounts of net...
-
Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2013? b. What are the amounts of net...
-
Segment (Division) Evaluation In this assignment you will analyze the performance of PepsiCo's divisions. SFAS 131 requires publicly traded companies to disclose division information in the notes to...
-
Show that the inverse of a unitary matrix is again unitary.
-
Lets translate The United States is a great place to invest into a simple GDP story. Recall that GDP = C + I + G + Net exports. In this story, foreigners build up the U.S. capital stock by pushing...
-
True or False: If MARR \(=10 \%\) and IRR \(=9 \%\), then ERR \( <10 \%\) and \(\mathrm{PW}>\$ 0\).
-
Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs. Variable Cost per Unit Direct materials...
-
What can be learned about the evolution of healthcare in the United States? How do you feel the problem of access and cost to healthcare could/should be solved? What changes do you believe would be...
-
Visit Professor Kenneth French's data library website: mba.tuck.dartmouth.edu/ pages/faculty/ken.french/data_library.html and download the monthly returns of "6 portfolios formed on size and...
-
Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2015? b. What are the amounts of net...
-
Using the information from 2-12, prepare the cash flow statement for Rhodes Corporation. Information from 2-12: Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)...
-
A large electroscope is made with leaves that are 78-cm-long wires with tiny 24-g spheres at the ends. When charged, nearly all the charge resides on the spheres. If the wires each make a 30o angle...
-
Choose a brand that demonstrates social responsibility, evaluate their campaigns thoroughly. How this brand can improve their social responsibility campaign and communication of this campaign Design...
-
the Names of the Litigants and a Very Brief Story of the Case Introduction: Integration of Wesleyan Theology Important Legal Jargon for Case Brief Story of the Case The Issue(s) to be Determined...
-
TO HAND IN Some practice with It's formula Let (Bt, t > 0) be a standard Brownian motion. For each of the processes (Xt, tT) below: Determine if they are martingales for the Brownian filtration. If...
-
into the profession of nursing is a long and significant process that takes place over years of formal and information training. OA. Professionalization B. Socialization C. Dominance D. Negotiation
-
Explain the Terms: Explain the Terms Reasonably foreseeable Explain the Terms Sufficiently proximate Explain the Terms reasonable person Explain the Terms Professional Conduct Explain the Terms...
-
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter...
-
In your readings, there were many examples given for nurturing close family relationships in this ever-evolving technological society we live in Based upon your readings and research describe three...
-
What is the future value of a 9%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
-
Fast Action Video Products' sales are expected to increase from $2 million in 2012 to $3 million in 2013 or by 50%. Its assets totalled $1.5 million at the end of 2012. Fast Action is at full...
-
Garlington Technologies Inc. 2012 financial statements are shown below. Garlington Technologies Inc: Balance Sheet as of December 31, 2012 Garlington Technologies Inc.: Income Statement for December...
-
Jen and Barry's ice cream shop charges $1.65 for a cone. Variable expenses are $0.31 per cone, and fixed costs total $2,000 per month. A Valentine's Day promotion is being planned for the second week...
-
a. The future value of a $1,050 savings deposit after five years at an annual interest rate of 4 percent. (Round FV factor to 3 decimal places and final answer to 2 decimal places.) Future value b....
-
QuestromT Not complete Marked out of 2.00 ring question Homework - Week 6 - Module 23 Determining Unit Costs, Variance Analysis, and Interpretation Big Dog Company, a manufacturer of dog food,...
Study smarter with the SolutionInn App