Calculate the Valuation Metrics for Year 2 and Year 3.

Also construct ROIC Tree for Year 2 and Year 3. Assume corp

INCOME STATEMENT Net Sales Income from Marketable Securities Non- Operating Income Total Income Cost of Goods Sold Selling and General Administration Expenses Depreciation Interest Expenses Total Cost and Expenses PBT Tax Provision PAT Dividend Retained Earnings BALANCE SHEET LIABILITIES Equity Capital Reserves and Surplus Debt TOTAL ASSETS Fixed Assets Investments

Year 1 180 180 100 30 12 12 154 26 8 18 11 7 Year 1 60 40 100 200

150 -

Net Current Assets TOTAL

50 200

Year 2 and Year 3. Assume corporate tax rate at 40%.

Year 2 200 200 120 20 15 15 170 30 9 21 12 9 Year 2 90 49 119 258

Year 3 229 3 8 240 125 45 18 16 24 36 12 24 12 12 Year 3 90 61 134 285

175 20

190 25

63 258

70 285