I've already completed the calculations; however, I need help with the "check all that apply" question.

Ch 06: Assignment - Accounting for Financial Management negative cor sell recommendation in the value nas uecreaseu. He has recommenceu that you use several metrics has changed, and he has provided you with the following income statement and balance sheet. Extensive Enterprise Inc. Income Statement January 1 - December 31, Year 2 Year 2 Year 1 Sales Expenses $3,675,000 2,940,000 $735,000 EBITDA $3,500,000 2,870,000 $630,000 122,500 $507,500 87,500 128,625 Depreciation and amortization expense EBIT $606,375 Interest expense 110,250 EBT $496,125 $420,000 Tax expense (40%) 198,450 168,000 $297,675 $252,000 Net income Common dividends Addition to retained earnings Excludes depreciation and amortization $178,605 $119,070 $151,200 $100,800 Ch 06: Assignment - Accounting for Financial Management Extensive Enterprise Inc. Balance Sheet December 31, Year 2 Assets: Cash and cash equivalents Receivables Inventory Current assets Net fixed assets Total current assets Liabilities and Equity: Accounts payable Year 2 $249,375 831,250 1,454,688 $2,535,313 1,620,937 $4,156,250 Year 1 $199,500 665,000 1,163,750 $2,028,250 1,296,750 $3,325,000 Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock ($1 par) Retained earnings Total equity Total liabilities and equity Shares outstanding Weighted average cost of capital $623,438 405,234 872,813 $1,901,485 800,078 $2,701,563 290,937 1,163,750 $1,454,687 $4,156,250 290,937 7.98% $498,750 324,188 698,250 $1,521,188 640,063 $2,161,250 232,750 931,000 $1,163,750 $3,325,000 232,750 7.30% Ch 06: Assignment - Accounting for Financial Management Company Growth and Performance Metrics Metric Year 1 Percentage Change Year 2 General Metrics $3,675,000 $297,675 426,300 $1,506,641 $ 1.02 $0.61 5.00 1.47 $21.73 $ $3,500,000 $252,000 $374,500 1,205,312 $1.08 0.65 5.00 % 18.13 % 13.83 % 25.00 % -5.56 % -6.15 % 0.00% -8.70% 10.03% $5.00 $ 1.61 $19.75 Sales Net income Net cash flow (NCF) Net operating working capital (NOWC) Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Cash flow per share (CFPS) Market price per share MVA Calculation Market value of equity Book value of equity Market Value Added (MVA) EVA Calculation Net operating profit after-tax (NOPAT) Investor-supplied operating capital Weighted average cost of capital Dollar cost of capital Return on invested capital (ROIC) Economic Value Added (EVA) $ $ 6,322,061 $1,454,687 4,867,374 4,596,813 $1,163,750 $3,433,063 37.53% 25.00% 41.78 % $ 19.48 % 25.00% $ $363,825 126,766 7.98% 331,669 7.16 % $114,157 304,500 101,413 7.30% 242,725 7.58 % 131,775 $ $ 36.64% -4.44% -13.36 % Using the change in Extensive's EVA as the decision criterion, which type of investment recommendation should you make to your clients? Ch 06: Assignment - Accounting for Financial Management Weighted average cost of capital 7.98% Dollar cost of capital $ 331,669 Return on invested capital (ROIC) 7.16 % Economic Value Added (EVA) $114,157 $ 7.30% 242,725 7.58 % 131,775 36.64% -4.44% -13.36 % $ Using the change in Extensive's EVA as the decision criterion, which type of investment recommendation should you make to your clients? O A buy recommendation A sell recommendation O A hold recommendation Which of the following statements are correct? Check all that apply. Other things remaining constant, Extensive's EVA will increase when its ROIC exceeds its WACC. Extensive's NCF is calculated by adding its annual depreciation and amortization expense to the corresponding year's EBITDA. Investor-supplied operating capital is recorded as accounts payable, accruals, and short-term investments. For any given year, one way to compute Extensive's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital. Extensive's net income is growing at a rate greater than its sales. This could imply that either its revenues are growing more quickly than its expenses or that management is being effective in managing its costs while achieving the reported growth in sales. Other things remaining constant, either event should increase the value of the firm. Grade It Now Save & Continue Continue without saving