Select information from ADINIKE Corporation\'s financial statements is provided

Question

Select information from ADINIKE Corporation's financial statements is provided here. Balance Sheets as of December 31 Current Assets Net Plant and Equipment Total Assets 2014 2013 60,000 45,000 140,000 135,000 200,000 180,000 Accounts Payable Notes Payable Accruals Long-Term Bonds Total Common Equity Total Liabilities & Equity 10,000 10,800 14,000 5,400 6,000 12,600 52,000 43,200 118,000 108,000 200,000 180,000 Income Statement as of December 31 EBITDA Depreciation and Amortization Interest Taxes 40% Net Income 2014 60,000.0 7,000.0 5,200.0 19,120.0 28,680.0 Other Information WACC Number of common shares outstanding Price per share 2014 20.40% 2,000 $88.50

Explanation / Answer

Adinike Corporation All Amounts in $ MVA or Market Value Added = Market Value of Equity - Investors' Capital (Book Value) = 2,000 X 88.50 - 118,000 = $ 177,000 - $ 118,000 = $ 59,000.

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