Question: Please solve for the answer in the highlighted yellow cells. Very important to make sure each cell shows how the solution was gotten by referencing
Please solve for the answer in the highlighted yellow cells. Very important to make sure each cell shows how the solution was gotten by referencing the cell used in the calculation. Thanks



b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for Net operating working capital (NOWC) Operating 2023 2023 2023 NOWC = current assets NOWC = NOWC = 2022 Operating 2022 NOWC = current assets 2022 NOWC = NOWC = Total net operating capital (TNOC) \begin{tabular}{l|l|l|} 2023 & TNOC = & NOWC \\ \hline 2023 & TNOC = & \\ \hline 2023 & TNOC = & \\ \hline 2022 & TNOC = & NOWC \\ 2022 & TNOC = & \\ 2022 & TNOC = & \end{tabular} Investment in total net operating capital 2023 Inv. In TOC = 2023 Inv. In TOC = 2023 Inv. In TOC = Net operating profit after taxes 2023 NOPAT = 2023 NOPAT = 2023 NOPAT = Free cash flow 2023 FCF = NOPAT 2023FCF= 2023 FCF = Return on invested capital 2023 ROIC = 2023 ROIC = 2023 ROIC = Operating current liabilities Operating current liabilities Fixed assets Fixed assets $2,022 TNOC (1T) Investment in total net operating capital X x NOPAT / Total net operating capital 1 Total net operating capital a. Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year. The federal-plus-state tax rate is 25%. Lan \& Chen Technologies: December 31 Balance Sheets (Millions of Dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 2023 2022 $47,250 $45,000 3,800 3,600 283,500270,000 $476,300141,750$453,600135,000 330,750315,000 $807,050$768,600 Key Input Data Tax rate 25%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
