Question: What is the correct answer to 2 below? Accounting for Financial Management: EVA/MVA Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements

What is the correct answer to 2 below?

Accounting for Financial Management: EVA/MVA

Quantitative Problem:Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset.

Balance Sheets:
2017 2016
Cash and equivalents $100 $85
Accounts receivable 275 200
Inventories 375 250
Total current assets $750 $635
Net plant and equipment 2,000 1,490
Total assets $2,750 $2,125
Accounts payable $150 $85
Accruals 75 50
Notes payable 150 75
Total current liabilities $375 $210
Long-term debt 450 290
Common stock 1,225 1,225
Retained earnings 700 400
Total liabilities and equity $2,750 $2,125

Income Statements:
2017 2016
Sales $2,000 $1,500
Operating costs excluding depreciation 1,250 1,000
EBITDA $750 $500
Depreciation and amortization 100 75
EBIT $650 $425
Interest 62 45
EBT $588 $380
Taxes (40%) 235 152
Net income $353 $228
Dividends paid $53 $48
Addition to retained earnings $300 $180
Shares outstanding 190 190
Price $20.83 $18.33
WACC 12.00%

1.Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollar. Do not round intermediate calculations. correct answer here $2,033

2.Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations. incorrect answer here $77.00

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