Calculate the firm-s eva and mva

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Reference no: EM13159999

Cumberland Industries most recent balance sheets in thousands of dollars are shown below and in partial model in file
a. The company's sales for 2005 were $455,000,000 and EBITDA was 15% of sales. Furthermore depreciation amounted to 11% of net fixed assets, interest charges were $8,550,000, the state plus federal corporate tax rate was 40% and Cumberland pays 40% of its net income out in dividends. Given this information construct Cumberland's income statement?.Please see attached
b. Next construct the firm's statement of retained earnings for the year ending 12-31-05 and then its 2005 statement of cash flows
c. Calculate net operating working capital, total net operating capital, net operating profit after taxes, and free cash flow for 2005.
d. Calculate the firm's EVA and MVA for 2005. Assume that Cumberland had 10 million shares outstanding that the year end closing stock price was $17.25 per share, and after tax cost capital was (WACC) 12%.

Reference no: EM13159999

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