For the current year, Mo-Z Manufacturing estimates that its Return on Invested Capital (ROIC) is 9% and its Weighted Ave

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answerhappygod
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For the current year, Mo-Z Manufacturing estimates that its Return on Invested Capital (ROIC) is 9% and its Weighted Ave

Post by answerhappygod »

For the current year, Mo-Z
Manufacturing estimates that its Return on Invested Capital (ROIC)
is 9% and its Weighted Average Cost of Capital (WACC) is 11%. (6
points each)
a. Do you expect Mo-Z’s Economic Value
Added (EVA) to be positive or negative or is it
ambiguous? Explain.
b. Do you expect Mo-Z’s Market Value
Added (MVA) to be positive or negative or is it
ambiguous? Explain.
c. Is the proper focus of management
EVA, MVA, profit, growth, or some other
measure? Explain.
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