EVA and MVA
Not what you're looking for?
You must show all your work on this homework to receive credit.
Downloadable Financials Data
Return to Hoover's Annual Financials
Annual Financials
Income Statement (All dollar amounts in millions except per share amounts.)
Dec 04 Dec 03 Dec 02
Revenue 13,564.70 12,358.60 11,356.60
Costs of Goods Sold 9,039.40 8,236.10 7,831.80
Gross Profit 4,525.30 4,122.50 3,524.80
Gross Profit Margin 33.40% 33.40% 31.00%
SG&A Expense 3,726.20 3,403.90 2,817.70
Depreciation & Amortization 269.2 248.3 200.7
Operating Income 529.9 470.3 506.4
Operating Margin 3.90% 3.80% 4.50%
Nonoperating Income 37.7 29.6 25.7
Nonoperating Expenses 61.1 54.8 46.2
Income Before Taxes 461.1 445.1 479.2
Income Taxes 125.7 143 167.7
Net Income After Taxes 335.4 302.1 311.5
Net Profit Margin 2.50% 2.20% 2.70%
Dividends per Share ($) 0 0 0
Balance Sheet Dec 04 Dec 03 Dec 02
Cash 793.7 790.9 877.1
Net Recievables 1,303.90 1,112.40 771.6
Inventories 1,408.80 1,336.30 1,305.60
Other Current Assets 409.8 337 255.4
Total Current Assets 3,916.20 3,576.70 3,209.70
Net Fixed Assets 2,851.20 2,568.50 1,556.10
Total Assets 6,767.40 6,145.20 4,765.80
Accounts Payable 1,650.30 1,323.20 1,174.00
Short-Term Debt 15.1 12.9 16.1
Accruals 952.9 941.2 801.9
Total Current Liabilities 2,618.40 2,277.30 1,992.00
Long-Term Debt 583.7 829.3 412
Total Liabilities 3,544.30 3,351.20 2,468.70
Preferred Stock Equity 0 0 0
Common Stock Equity 3,223.00 2,794.10 2,297.10
Total Equity 3,223.00 2,794.10 2,297.10
Shares Outstanding (mil.) 312.3 310.2 308.5
For the company above, find the following for 2003 & 2004:
NOPAT
NOWC
Operating Capital
Net Cash Flow
Operating Cash Flow
Free Cash Flow
EVA (assume cost of capital of 8.5% for 2003, 9% for 2004)
MVA (assume a market price of $16.71 for Dec. 2003, and $17.36 for Dec. 2004)
(See attached file for full problem description)
Purchase this Solution
Solution Summary
This provides the steps to calculate EVA and MVA, NOPAT, NOWC, Operating Capital, Net Cash Flow, Operating Cash Flow, Free Cash Flow
Solution Preview
You must show all your work on this homework to receive credit.
Downloadable Financials Data
Return to Hoover's Annual Financials
Annual Financials
Income Statement (All dollar amounts in millions except per share amounts.)
Dec 04 Dec 03 Dec 02
Revenue 13,564.70 12,358.60 11,356.60
Costs of Goods Sold 9,039.40 8,236.10 7,831.80
Gross Profit 4,525.30 4,122.50 3,524.80
Gross Profit Margin 33.40% 33.40% 31.00%
SG&A ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Introduction to Finance
This quiz test introductory finance topics.