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A. Analysing the Results of a Valuation You decide to value a steady-state company using probability-weighted scenario analysis. In scenario 1, NOPLAT is expected to

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A. Analysing the Results of a Valuation You decide to value a steady-state company using probability-weighted scenario analysis. In scenario 1, NOPLAT is expected to grow at 6 percent, and ROIC equals 16 percent. In scenario 2, NOPLAT is expected to grow at 2 percent, and ROIC equals 8 percent. Next year's NOPLAT is expected to equal $100 million, and the weighted average cost of capital is 10 percent. Questions: - Define what is a steady-state company and probability-weighted scenario analysis. - Using the key value driver formula introduced in Chapter 3, what is the enterprise value in each scenario? - If each scenario is equally likely, what is the enterprise value for the company

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