Reference no: EM132459538

1. Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $32.00 per share. How much value has O'Brien's management added to stockholder wealth over the years, i.e., what is O'Brien's MVA?
2. During 2018, Bascom Bakery paid out $33,525 of common dividends. It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $159,600. How much net income did the firm earn during the year?
3.  Emery Mining Inc. recently reported $125,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. (Round your intermediate and final answers to two decimal places.)
4. Casey Motors recently reported the following information:

· Net income = $750,000.

· Tax rate = 40%.

· Interest expense = $200,000.

· Total invested capital employed = $9 million.

· After-tax cost of capital = 10%.

 What is the company's EVA?

5 Hartzell Inc. had the following data for 2017, in millions: Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2018 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] = $825; and Total assets = $2,500. Assume the firm had no excess cash. How much free cash flow did the firm generate dring 2018?