Question

For a given company, next year’s NOPLAT is $200. For the foreseeable future, the growth rate will be 5 percent, the ROIC will be 10 percent, and the WACC will be 8 percent. Using the key driver formula, calculate the value of the company.

a) $2,500

b) $4,000

c) $6,667

d) $3,333

Answer

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