Question: Comparing Model Weights for DCF and ROPI Compare the valuation model information for General Mills from Review 14-2 (ROPI) with Review 13-2 (DCF). For each

Comparing Model Weights for DCF and ROPI Compare the valuation model information for General Mills from Review 14-2 (ROPI) with Review 13-2 (DCF). For each model, compute the relative proportion of the total estimated firm value that comes from the following components:

???? Net operating assets.

???? Present value of estimates for each year in the horizon period.

???? Present value of the terminal value estimate.

What do these relative proportions tell us about the precision of the DCF model compared to the ROPI model?

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