Question $1$

$0/100$

c$.$ Calculate $2020$ and $2021$ net operating working capital $($NOWC$)$ and $2021$ tree cash flow $($FCF$).$ Assume the firm has no excess cash.

$()2020()2021$

d$.$ If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?

If Laiho increased its dividend payout ratio, the firm would pay corporate taxes and the company's shareholders would pay 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? $ thousand

f$.$ Assume that the firm's stock price is $$22$ per share and that at year$-$end $2021$ the firm has $10$ million shares outstanding. What is the firm's MVA at year$-$end $2021?$

$

thousand

$?$

Back

Autosaved at $10$:$46$ PM

Nex

$(1)$