You are given the following forecasted information for a constant growth company: sales = $10 million, operating

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You are given the following forecasted information for a constant growth company:

sales = $10 million, operating profitability (OP) = 5%, capital requirements (CR) = 40%, growth (g) = 6%, and the weighted average cost of capital (WACC) = 10%. What is the current level of capital? ($4 million) What is the current level of NOPAT? ($0.5 million)

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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