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Calculate the eva and mva on the basis of market value

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Reference no: EM132967916

Question - The Income Statement and Balance Sheet of Jupiter Ltd. is given below: Income Statement Particulars (Rs in lakhs) Sales 4250 Interest received on Investment 160 Manufacturing cost 180 Administrative cost 155 Selling & Distribution cost 145 Depreciation 250 Profit on sale of old assets 55 Loss on sale of furniture 50 Interest cost 250 Profit before tax ? Tax ? Profit after tax 2232.75 Balance Sheet Liabilities Rs (In Lakhs) Assets Rs (In lakhs) Equity Capital (Rs 10/share) 950 Machinery 650 Debt 750 Building 825 Payables 255 Inventory 245 Provisions 235 Receivables 325 Cash 145 Total 2190 2190 Other Information:- The cost of debt before tax is 10% The risk free rate of return is 7% The beta factor of the company is 1.30 Current market price of equity share is Rs 55 The market risk premium is 7% From the information given you are required to calculate the EVA and MVA on the basis of Market value of equity capital.

Reference no: EM132967916

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