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Determine the WACC, and determine whether the company generated value or not, and what the amount was for both years   ANSWER     2020 2021 WACC     EVA     ROIC

Determine the WACC, and determine whether the company generated value or not, and what the amount was for both years   ANSWER     2020 2021 WACC     EVA     ROIC

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 13MCQ
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Determine the WACC, and determine whether the company generated value or not, and what the amount was for both years

  ANSWER  
  2020 2021
WACC    
EVA    
ROIC    
Total Liabilities and Equity INCOME STATEMENT Net Operating Revenues Cost of goods sold Gross Profit Depreciation Operating Expenses Operating Income Interest (income) expense Income Before Income Taxes Income Tax Net Income ADDITIONAL INFORMATION Purchases Preferred dividend Outstanding common shares Common dividend Market price Return on Equity 2,705,890 2020 2,228,243 1,325,308 902,935 81,098 602,415 219,423 21,450 197,973 59,392 138,581 1,303,803 275 $ 13,750 4.40 $ 165.00 $ 5.50% $ $ 3,008,228 2021 2,510,530 1,489,070 1,021,460 86,708 673,420 261,333 26,125 235,208 70,562 164,645 1,510,575 275 16,500 5.23 154.00 5.44%
Transcribed Image Text:Total Liabilities and Equity INCOME STATEMENT Net Operating Revenues Cost of goods sold Gross Profit Depreciation Operating Expenses Operating Income Interest (income) expense Income Before Income Taxes Income Tax Net Income ADDITIONAL INFORMATION Purchases Preferred dividend Outstanding common shares Common dividend Market price Return on Equity 2,705,890 2020 2,228,243 1,325,308 902,935 81,098 602,415 219,423 21,450 197,973 59,392 138,581 1,303,803 275 $ 13,750 4.40 $ 165.00 $ 5.50% $ $ 3,008,228 2021 2,510,530 1,489,070 1,021,460 86,708 673,420 261,333 26,125 235,208 70,562 164,645 1,510,575 275 16,500 5.23 154.00 5.44%
BALANCE SHEET ASSETS Current Assets Cash and cash equivalents Accounts Receivables Inventories Total Current Assets Non-Current Asset Property, plant and equipment - net Total Assets Liabilities Current Liabilities Accounts payable Loans and notes payable Total Current Liabilities Long-term debt Total Liabilities Stockholders Equity Common stock Reinvested earnings Stockholders Equity 2020 162,003 578,848 343,310 1,084,160 1,621,730 2,705,890 356,098 141,928 498,025 476,823 974,848 100,513 1,630,530 1,731,043 2021 Differen 311,055 149,053 598,455 19,608 364,815 21,505 1,733,903 112,173 3,008,228 418,275 62,178 192,280 50,353 610,555 588,473 111,650 1,199,028 100,513 1,708,688 78,158 1,274,325 1,809,200
Transcribed Image Text:BALANCE SHEET ASSETS Current Assets Cash and cash equivalents Accounts Receivables Inventories Total Current Assets Non-Current Asset Property, plant and equipment - net Total Assets Liabilities Current Liabilities Accounts payable Loans and notes payable Total Current Liabilities Long-term debt Total Liabilities Stockholders Equity Common stock Reinvested earnings Stockholders Equity 2020 162,003 578,848 343,310 1,084,160 1,621,730 2,705,890 356,098 141,928 498,025 476,823 974,848 100,513 1,630,530 1,731,043 2021 Differen 311,055 149,053 598,455 19,608 364,815 21,505 1,733,903 112,173 3,008,228 418,275 62,178 192,280 50,353 610,555 588,473 111,650 1,199,028 100,513 1,708,688 78,158 1,274,325 1,809,200
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