Go to Thomson Reuters' Eikon and gather the data for the past 5 years for Lowe's (2015 through 2019) 

a. Calculate the Revenue Growth Rate

b. Calculate the Operating Margin 

 

c. Calculate the Net Operating Profit After Tax [NOPAT) for your company 

 

What is the interpretation of NOPAT?

Explain how would you forecast the NOPAT for the next 5 years? Be as detailed as possible, but you use only the necessary data and explanations

Using the information from above explain what else do you need to determine the Unlevered Free Cash Flows?

Build a Revenue Forecast chart as well as an Operating Income and Nopat Forecast Charts

Transcribed Image Text:

Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue 59074 65,017 68,619 71,309 72148 Operating Income $4,971.00 $5,846.00 $6,586.00 $4,018.00 $6,314.00 Effective Tax Rate 37.76 42.4% 40.5% 37.2% 31.82 Тахes $1,873.00 2,108.00 2,042.00 1,080.00 $1,342.00 NOPAT Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue 59074 65,017 68,619 71,309 72148 Operating Income $4,971.00 $5,846.00 $6,586.00 $4,018.00 $6,314.00 Effective Tax Rate 37.76 42.4% 40.5% 37.2% 31.82 Тахes $1,873.00 2,108.00 2,042.00 1,080.00 $1,342.00 NOPAT

Answer rating: 100% (QA)

a Revenue Growth Rate 2015 a 2016 b 2017 c 2018 d 2019 e Revenue 59074 65017 68619 ... View the full answer