Given data: Sales $2,000.000 OpCap $1,120,000 Wacc 9% OP = Nopat/sales 4.5% CR = OpCap/sales 56% Year Rate growth (%) Sales Nopat OpCap Free Cash Flow (FCF) Free Cash Flow - Growth ROIC 0 - $2,000.000...






































































































































Given data:
Sales $2,000.000
OpCap $1,120,000
Wacc9%
OP = Nopat/sales4.5%
CR = OpCap/sales56%
YearRate growth (%)SalesNopatOpCapFree Cash Flow (FCF)Free Cash Flow - GrowthROIC
0- $2,000.000 $90.000 $1,120.000---
10.10 $2,200.000 $99.000 $1,232.000 $(13.000)-8.04%
20.08 $2,376.000 $106.920 $1,330.560 $8.360-164.31%8.04%
30.05 $2,494.800 $112.266 $1,397.088 $45.738447.11%8.04%
40.05 $2,619.540 $117.879 $1,466.942 $48.0255.00%8.04%

Assume growth rates are at their original levels. What happens to the ROIC and current value of operations if the operating profitability ratio increases to 5.5%?


Now assume growth rates and operating profitability ratios are at their original levels. What happens to the ROIC and current value of operations if the capital requirement ratio decreases to 51%?



Jun 09, 2022
SOLUTION.PDF
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?