Question: What would be the total equity value (as calculated for scenarios in Table 8-6 using abnormal earnings) if the sales growth in years 2021 and

What would be the total equity value (as calculated for scenarios in Table 8-6 using abnormal earnings) if the sales growth in years 2021 and beyond is 8.5percent and the company is able to generate abnormal returns at the same level as in fiscal 2020 forever (keeping all the other assumptions in the table unchanged)?

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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales growth rate 57 66 71 69 67 65 63 61 59 57 85 NOPAT margin 79 75 71 67 63 59 55 50 45 40 4... View full answer

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