1. Accara, Inc has MVA = 70 millions and $250 mi of common equity. Its current stock price is $100. Calculate the firm’s outstanding shares.
2. Olay Co. has $3mi net operating working capital and $30 mi net fixed assets. It has sales of $35mi, costs of $20mi, depreciation expense of $2.5mi., interest expense of $750,000, and a tax rate of 34 percent. Calculate the firm’s EVA if the weighted average cost of capital (WACC) is 7.25%.