a$.$ Sales for $2021$ were $$466,150,000,$ and EBITDA was $15\%$ of sales. Furthermore, depreciation and amortization were $18\%$ of net fixed assets,

interest was $$7,702,000,$ the corporate tax rate was $25\%,$ and Laiho pays $48\mathrm{.}25\%$ of its net income as dividends. Given this information, construct

the firm's $2021$ income statement.

Laiho Industries: Income Statement for Year Ending December $31,2021$

$($thousands of dollars$)$

b$.$ Construct the statement of stockholders' equity for the year ending December $31,2021,$ and the $2021$ statement of cash flows. Hint: The difference

in accumulated depreciation from one year to the next is the annual depreciation expense for the year:

Laihe Industriest Statement of Steckholders' Equity, December $31,2021($thousands of dollars$)$

Laiho Industries: Statement of Cash Flows for $2021($thousands of dollars$)$

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 Loiho increased its dividend poyout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the

compeny's shareholders?

If Leiho incressed its dividend payout ratio, the firm would pay the same amourt of $15$ corporate taxes and the company's shareholders would poy

taxes on the dividends they would receive.

e$.$ Assume that the firm's after$-$tax cost of capital is $9\mathrm{.}5\%.$ What is the firm's $2021$ EVA?

$

f$.$ Assume that the firm's stock price is $$21$ per share and that at year$-$end $2021$ the firm has $10$ million shares outstanding. What is the firm's MVA of

Year$-$end $2021?$

$5$longrightarrow thousand