Question: 1. Market Value Added is the difference between the capital contributed to the company by bondholders and shareholders and the final market value of the

1. Market Value Added is the difference between the capital contributed to the company by bondholders and shareholders and the final market value of the product. The formula used to find market value added is: Market Value Added = Market Value - Capital Invested if bondholders and shareholders have contributed $1,000,000 to form Company SASA and during its existence since inception and it is currently listed on the stock exchange with a stock market value of $2,000,000, calculate MVA value? What does the result of your calculations tell you about the performance of company SASA? WHY MVA MATTERS? 2. If a stock is expected to pay a dividend of $40 for the current year, what is the approximate present value of this stock, given at discount rate of 5% and a dividend growth rate of 3%? 3. For the following supply and demand curves, calculate equilibrium price and quantity QD = 500 - P; QS = 50 + P

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