Use the Template for Option 1 (linked under module 1) to answer the following questions:
- Using the financial statements in section 1, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year.
- Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent year.
- Why are these ratios important? Who are three users of these ratios and what are they used for?
Your paper should meet the following requirements:
- Be approximately 2 pages in length, not including the cover page and reference page.
- Each paper should include an introduction, a body with at least two fully developed paragraphs, and a conclusion.
- Support your answers with the readings from Module 1 and at least one scholarly journal article.
- Be clear and well written, concise, and logical, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.