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1) Consider the following information about Firefly Networks: EBIT 1 $400 ROIC 25% IR 40% WACC 15% a. Calculate NOPAT b. What is the growth

1) Consider the following information about Firefly Networks:

EBIT₁	$400
ROIC	25%
IR	40%
WACC	15%

a. Calculate NOPAT

b. What is the growth rate in operating earnings?

c. What is the value of the firm?

d. Firefly decides to invest less of their operating income in the company to provide more Free Cash Flow for stockholders and bondholders. Would you expect the firm to become more or less valuable because of this? Explain.

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