1. Market-value added is measured as additional value that could be calculated as an excess of the market capitalization of the company over its book value. Is it true or false? 2. Which of the following statements is CORRECT? A. Enterprise value is estimated as a market capitalization plus debt B. Only short-term debt is estimated when net debt is measured C. Market-value added is based on market capitalization of the company D. Corporate valuation is based on the method that assumes discounting of future cash flows necessarily based on a constant growth rate E. None of the above 60 3. LETR Inc. has the following balance sheet (mln dollars). How much total operating capital does the firm have? Calculate the company's free cash flow, if the NOPAT is equal to $120 mln, operating capital for the previous year was equal to $195 mln. Cash $ 120 Accounts payable $ 20 Short-term 50.00 Accruals 40 investments Accounts receivable 30.00 Notes payable Inventory 60 Long-term debt 160 Gross fixed assets $180 Common stock 80 Accumulated deprec. 40.00 Retained earnings 40 Total common equity $ 120 Total assets $400 Total liab. & equity $400