Question

Use the following information below to answer the question.

NOPLATt+1 = $72.2m

NOPLAT growth rate = 3%

Return on new invested capital = 11.2%

Weighted average cost of capital = 4%

Which of the following is closest to the continuing value in year t?

a) $1,005m

b) $1,201m

c) $4,485m

d) $6,126m

Answer

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