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    Working capital, profit, free cash flow, EVA, MVA

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    See attached file.

    a. Using the financial statements in attached file, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2010. (Hint: Start with the partial model in the file and report all dollar figures in thousands to reduce clutter.)

    b. Assume there were 15 million shares outstanding at the end of 2010, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for 2010.

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    Solution Summary

    The solution explains how to calculate working capital, profit, free cash flow, EVA, MVA