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Begin with the partial model in the file Ch02 P15 Build a Model.xls on the textbook?s Web site

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Begin with the partial model in the file Ch02 P15 Build a Model.xls on the textbook?s Web site.;a. Using the financial statements shown below for Lan & Chen Technologies, 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.;Lan & Chen Technologies: Income Statements for Year Ending December 31;(Thousands of Dollars);2010 2009;Sales $945,000 $900,000;Expenses excluding depreciation and amortization 812,700 774,000;EBITDA $132,300 $126,000;Depreciation and amortization 33,100 31,500;EBIT $ 99,200 $ 94,500;Interest expense 10,470 8,600;EBT $ 88,730 $ 85,900;Taxes (40%) 35,492 34,360;Net income $ 53,238 $ 51,540;Common dividends $ 43,300 $ 41,230;Addition to retained earnings $ 9,938 $ 10,310;2010 2009;Assets;Cash and cash equivalents $ 47,250 $ 45,000;Short-term investments 3,800 3,600;Accounts receivable 283,500 270,000;Inventories 141,750 135,000;Total current assets $476,300 $453,600;Net fixed assets 330,750 315,000;Total assets $807,050 $768,600;Liabilities and equity;Accounts payable $ 94,500 $ 90,000;Accruals 47,250 45,000;Notes payable 26,262 9,000;Total current liabilities $168,012 $144,000;Long-term debt 94,500 90,000;Total liabilities $262,512 $234,000;Common stock 444,600 444,600;Retained earnings 99,938 90,000;Total common equity $544,538 $534,600;Total liabilities and equity $807,050 $768,600

 

Paper#74624 | Written in 18-Jul-2015

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