Resolve learning activity 4 Unit 1 and hand it according to its duedate. Show step by step how you get the answer.Make sure to explain in words the economic meaning of your answer to show mastery of these topics.

Exercise 1

In 2011 Company XYZ had sales of 345,620million, net operating profit after taxes of 10,250 million, and employed $62,650 million in debt and equity capital. Company XYZ cost of capital was 6.5%. What was XYZ EVA in 2011?

Exercise 2

Company XYZ has the following demand function

P= 100 - 0.0002Q

Its marginal revenue function was

MR = 100 - 0.004Q

a. Find the firm's Total Revenue Function

b. Calculate the output level and price that maximizes total revenue.

c. Calculate the amount of revenues in dollars.

Exercise 3

Company XYZ expected after tax profits are represented in the following table at an expected discount rate of 10%. Calculate the expected value of the firm XYZ:

YEAR / EXPECTED PROFTIS AFTER TAX (KUSD)

2008 / 150

2009 / 180

2010 / 200

2011 / 230