ABC Company has a forecast NOPLAT of S107 in year 2021. Assuming a cost of capital of

Fantastic news! We've Found the answer you've been seeking!

Question:

ABC Company has a forecast NOPLAT of S107 in year 2021. Assuming a cost of capital of 9.70%a growth rate of 4%, and a return on new invested capital of 10%, what is the continuing value of the company at the end of year 2021?

a.1301
b.1171
d.1149
e. 1105

Related Book For answer-question

Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

See More Books

Posted Date: Mar 11, 2024 03:05 PM

See More Questions

a. Create a weighted scores, or IE, matrix for Coke using the scores from the IFE matrix and EFE matrix I provided, not you own, using the template. Analyze and explain your results by looking at the...
A colleague suggests that a 6 percent growth rate is too low for revenue, profit, and cash flow growth beyond year 5. He suggests raising growth to 12 percent in the continuing value. If NOPLAT...
Since growth is stable for ApparelCo, you decide to start the continuing value with year 3 cash flows (i.e., cash flows in year 3 and beyond are part of the continuing value). Using the key value...
Migration is a popular strategy among many species. Monarch butterflies migrate between the Sierra Madre mountains in Mexico and many locations across the USA and Canada. Answer the following...
a. Show for the upper-tailed test with 1 and 2 known that as either m or n increases, b decreases when 1 = 2. 0. b. For the case of equal sample sizes (m = n) and fixed a, what happens to the...
What assets are considered marital assets?
Use information from Section 6.7 to estimate which form of electromagnetic radiation is the lowest energy ionizing radiation. Data from section 6.7 When we first introduced the concept of the...
Rocky Mountain Corporation makes two types of hiking bootsXactive and the Pathbreaker. Data concerning these two product lines appear below: The company has a traditional costing system in which...
An 8,000-seat amphitheater will sell tickets at $70 and $125 for an Aerosmith concert. Assuming the concert sells out, the revenue will be $763,500. How many of each type of ticket need to be sold to...
There is a paradigm that - "There is no point in training staff because they leave so it is an expensive and time consuming exercise!" Q: What is your opinion about the above paradigm?
Determine whether the limit tan- [(x + y) + (xy) + 2] [(x + y) 2e+y lim (x,y) >(0,0) exists. If it does exist, find its value. (Hint: Use polar coordinates r and 0.)
Many of the firms treated had multiple plants. After the researchers left, what do you think they did about training in their other plants?
Given the following two classes in the same package, which constructors contain compiler errors? (Choose three.) A. public Big(boolean stillIn) B. public Trouble() C. public Trouble(int deep) D....
Since 1980, wage inequality in the United States has increased substantially. According to the U.S. Census Bureau, income received by the top 20 percent of households rose from 44 percent of total...
Describe how each of the following events would affect (1) demand for auto workers and (2) auto workers wages in the country of Astoria, home of the all-electric car, the Astro Galactica. Illustrate...
From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2005 Closing stock Rs. 15,000. Account Title Stock as on April 01, 2005...
Please choose an American-traded company that you would like to track in any US stock exchange/stock market. Choose a company that you like or are interested in the product or service that they sell....
Repeat Exercise 16.6 using the t-test of the coefficient of correlation. Is this result identical to the one you produced in Exercise 16.6?
Discuss what pattern you would expect over time for market-value-tocapital and market-value-to-earnings multiples in an industry where earnings show little long-term growth but high cyclicality.
If a companys value is not driven by its short-term earnings, why do investors spend so much time analyzing a companys annual or even quarterly earnings announcements?
Why is maturity mismatch important for understanding a banks risk and analyzing its performance?
A probability experiment consists of rolling a single fair die. (a) Identify the outcomes of the probability experiment. (b) Determine the sample space. (c) Define the event E = roll an even number....
A pair of fair dice is rolled. Fair die are die where each outcome is equally likely. (a) Compute the probability of rolling a seven. (b) Compute the probability of rolling snake eyes; that is,...
Our number system consists of the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9. Because we do not write numbers such as 12 as 012, the first significant digit in any number must be 1, 2, 3, 4, 5, 6, 7, 8,...

ABC Company has a forecast NOPLAT of S107 in year 2021. Assuming a cost of capital of

Question:

Expert Answer:

To calculate the continuing value of the company at the end of ... View the full answer

Valuation Measuring and managing the values of companies

Students also viewed these finance questions