K. johnson, inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. this past year, the firm earned an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. it has been estimated that the firm's investors have an opportunity cost on their funds of 14 percent, which is the same as the firm's overall cost of capital. the firm's total assets for the year were $ 100 million. compute the amount of economic value created or destroyed by the firm. how does your finding support or fail to support what you would conclude using ratio analysis to evaluate the firm's performance? assume that the firm has no debt.

Consider the following potential events that might have occurred to global on december​ 30, 2016. for each​ one, indicate which line items in​ global's balance sheet would be affected and by how much. also indicate the change to​ global's book value of equity. a. global used $ 19.8$19.8 million of its available cash to repay $ 19.8$19.8 million of its​ long-term debt. b. a warehouse fire destroyed $ 4.9$4.9 million worth of uninsured inventory. c. global used $ 4.6$4.6 million in cash and $ 5.1$5.1 million in new​ long-term debt to purchase a $ 9.7$9.7 million building. d. a large customer owing $ 3.2$3.2 million for products it already received declared​ bankruptcy, leaving no possibility that global would ever receive payment. e. ​global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 48 %48%. f. a key competitor announces a radical new pricing policy that will drastically undercut​ global's prices.