Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 08/30/2020 for Costco. ($ millions) Reported 2020 Revenue: NOPAT: NOA: ROPI: Forecast Horizon Period 2022 2021 2023 $166,761.0 $176,766.7 $187,372.7 $198,615.0 $210,531.9 $4,112.0 $4,358.8 $4,620.3 $4,897.5 $5,191.4 $13,009.0 $13,789.5 $14,616.9 $15,493.9 $16,423.6 2021 [Select] 2024 Terminal Period Use the information above to calculate residual operating income (ROPI) during the horizon period (2021- 2024) and the terminal period. Assume a weighted average cost of capital of 4.0%. ↳ $ millions 2022 2023 2024 [Select] V [Select] [Select] V $212,637.2 $5.243.3 $16.587.8 Terminal Period [Select] V Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 08/30/2020 for Costco. ($ millions) Reported 2020 Revenue: NOPAT: NOA: ROPI: Forecast Horizon Period 2022 2021 2023 $166,761.0 $176,766.7 $187,372.7 $198,615.0 $210,531.9 $4,112.0 $4,358.8 $4,620.3 $4,897.5 $5,191.4 $13,009.0 $13,789.5 $14,616.9 $15,493.9 $16,423.6 2021 [Select] 2024 Terminal Period Use the information above to calculate residual operating income (ROPI) during the horizon period (2021- 2024) and the terminal period. Assume a weighted average cost of capital of 4.0%. ↳ $ millions 2022 2023 2024 [Select] V [Select] [Select] V $212,637.2 $5.243.3 $16.587.8 Terminal Period [Select] V
Expert Answer:
Answer rating: 100% (QA)
To calculate the residual operating income ROPI during the horizon period 20212024 and the term... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date:
Students also viewed these accounting questions
-
The intercultural business communication process as the interaction of three variables: culture, business, and communication. Identify five sub-variables for each of these three components (culture,...
-
My group is creating a new affordable shoe for Nike called Nike Power series. We plan on setting the price at 150 CAD. b. Pricing: Outline retail pricing vs. competition and rationale. Price to...
-
A turbojet engine has the following design param- eters (which is at takeoff): FIGURE P 11.10 Fuel M = 0 Po= 101.33 kPa, To= 15.2C, Y = 1.4, Cpc = 1004 J/kg. K a = 0.95 = 30, e = 0.90 QR = 42,600...
-
What do we really learn from studying how managers actually spend their time and their decision-making powers in like-for-like organisations in different countries? What are the messages for key...
-
Presented below are selected accounts for Carpenter Company as reported in the worksheet at the end of May 2010. InstructionsComplete the worksheet by extending amounts reported in the adjusted trial...
-
With reference to Exercise 11.4 on page 398, use the value of s2 found in Exercise 11.20(a) to compute (a) A 95% confidence interval for the menu shear resistance when x = 24.5; (b) A 95% prediction...
-
A typical helium-neon laser found in supermarket checkout scanners emits \(633-\mathrm{nm}\)-wavelength light in a 1.0 -mm-diameter beam with a power of \(1.0 \mathrm{~mW}\). What are the amplitudes...
-
1. All of the following assets are capital assets, except: a. A personal automobile b. IBM stock c. Business inventory d. Personal furniture e. An individuals stamp collection 2. Which of the...
-
Elect a member of your early childhood program's administration team. Or, if you do not currently work in the field of ECE, interview staff from your child's school, an ECE program in your local...
-
On January 1, 2020, Valley Company entered into a 3-year construction contract that had an estimated gross revenue of P3,000,000. The entity used the percentage of completion in recognizing income...
-
Using the following words to write a legible paragraph which ensure me that the student understands Human Resources Training and Development. Use all the words to in the paragraph. Readiness for...
-
Calculate materiality for the client, assuming that it is a profit-oriented company and moderate audit risk. Explain why you chose the base you did and why you chose the percentage. You may use...
-
Some describe China's culture as "success-obsessed" which is incompatible with the prevalence of failure in startup ventures. Most other types of financing models, only a few experienced investors...
-
Throughout this course, we have explored a wide range of considerations in tourism and hospitality. Based on what you have learned, which aspect of the tourism industry floats your boat? In other...
-
1. what argument that you had with someone. Can you provide sufficient and appropriate background information about the argument such as who was involved, when/where/how did it happen, and what was...
-
An operation on a set A is a rule that assigns exactly one element ab to every pair of elements a, b E A. For example, +, -, and x are all operations on Z since adding, subtracting, or multiplying...
-
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...
-
For each of the characteristics, identify its relevance to financial managers?
-
What is the relation between capital budgeting and the discounted free cash flow model?
-
Explain why picking the project with the highest NPV might not be optimal when you evaluate projects with different resource requirements?
-
The following are summaries of the cash book and bank accounts of J. Duncan who does not keep his books using the double entry system. You are required to: (a) Calculate the value of J. Duncan's...
-
Read the following and answer the questions below. On 31 December 2015 the bank column of C. Tench's cash book showed a debit balance of 1,500. The monthly bank statement written up to 31 December...
-
The bank columns in the cash book for June 2016 and the bank statement for that month for D. Hogan are as follows: You are required to: () Write the cash book up to date to take the above into...
Study smarter with the SolutionInn App