Question: show all working with formular Here are simplified financial statements for Bluesome Corporation: Income Statement (figures in $ millions) Net Sales $881 Cost of goods

 show all working with formular Here are simplified financial statements for
Bluesome Corporation: Income Statement (figures in $ millions) Net Sales $881 Cost
show all working with formular

Here are simplified financial statements for Bluesome Corporation: Income Statement (figures in $ millions) Net Sales $881 Cost of goods sold 741 Depreciation 31 Earnings before interest and taxes (EBIT) 109 Interest Expense 12 Income before tax 97 Taxes 34 Net Income 63 Balance Sheet (figures in millions) End of Year Start of Year $369 258 $627 $312 222 $534 Assets Current assets Long-term aseets Total assets Liabilities and Shareholders' equity Current liabilities Long-term debt Shareholders' equity Total ttabilities and shareholders' enuity $194 108 325 $157 121 256 $627 Net Income 63 Start of Year $312 222 $534 Balance Sheet (figures in Smillions) End of Year Assets Current assets $369 Long-term aseets 258 Total assets $627 Liabilities and Shareholders' equity Current liabilities $194 Long-term debt 108 Shareholders' equity 325 Total liabilities and shareholders' equity $627 The company's cost of capital is 7.5% a. Calculate Bluesome's economic value added. b. What is the company's return on capital? (use start of year rather than average capital) c. What is its return on equity? (Use start of year rather than average equity) d. Is the company creating value for its shareholders? e. How to mitigate shareholders' concern for agency problem? Give at least one example, $157 121 256 $534

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