Expert Solutions

(1) Assess the company’s 2010–11 performance using ROIC, EVA and MVA and information:
• 2010–11 NOPAT: $501,632
• Stock price per share 30 June 2011: $60.25
• Number of shares outstanding 30 June 2011: 60,000
• WACC: 12%.
Balance Sheet 30 June 2012
Assets
Cash $199,398
Accounts Receivable 965,734
Inventories 366,421
Total Current Assets 1,531,553
Net Plant & Equipment 7,101,964
Total Assets 8,633,517
Liabilities
Accounts Payable 536,112
Interest-bearing Short-term debt 154,998
Accrued Expenses 803,765
Total Current Liabilities 1,494,875
Interest-bearing Long-term debt 4,100,643
Total Liabilities 5,595,518
Net Assets 3,037,999
Equity
Ordinary Equity Contributed 1,630,080
Retained Earnings 1,407,919
Total Equity 3,037,999