The following forecasts were made at the end of 2018 for a firm with CSE of...
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The following forecasts were made at the end of 2018 for a firm with CSE of $415 million and NFO of $720 million. The required return on operations is 12%. 2019E Operating income (in millions) 187 Net Operating Assets (in millions) 1.214.45 Reol (in millions) 2020E 2021E 200.09 214.10 1299.46 1,390.42 2022E 229.08 1,487.75 What is the enterprise value of this firm by the end of 2018? (Hint: The growth rate in ReOl over the forecast period was steady at 7% and expected to be so forever). The following forecasts were made at the end of 2018 for a firm with CSE of $415 million and NFO of $720 million. The required return on operations is 12%. 2019E Operating income (in millions) 187 Net Operating Assets (in millions) 1.214.45 Reol (in millions) 2020E 2021E 200.09 214.10 1299.46 1,390.42 2022E 229.08 1,487.75 What is the enterprise value of this firm by the end of 2018? (Hint: The growth rate in ReOl over the forecast period was steady at 7% and expected to be so forever).
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Answer rating: 100% (QA)
Terminal value Reol at the end of 2022 required return on operations growth rate 148775 012 00... View the full answer
Related Book For
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
Posted Date:
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