How would investors and management view eva and fcf?

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By Thursday, July 19, 2012, compare as well as contrast the differing views an investor and management may have on financial statements. How would investors and management view EVA and FCF? Pick a publically traded company. Try one that you are familiar with-you shop at their store, eat at their restaurants, or wear their clothes. On their Web site, try to find their annual financial report. If you can't find it on their site, do an Internet search, sometimes these are found under Investor Relations on a company's site. Yahoo finance is as well a good source. If you still can't find the annual report, try another search until you find one (for illustration, search for "GAP Annual Report"). Search for the economic profit, EVA, and free cash flow in the firm's annual report, and discuss your findings. Discuss the firm's operations as indicated by their annual report. You need submit your backup in Excel or other supporting documentation showing how answers were reached.

EVA=EBIT (1-T)- (Total investors capital x after-tax cost of capital)
Free Cash Flow = EBIT(1-T) + Depreciation - (Capital Expenditures+ Increase in Net Working Capital)

 

Reference no: EM131759

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