Banks and other financial institutions have many unique features in their financial statements. When we project the financial statements of a bank in the next few years, do we usually start with sales forecast? When we conduct a valuation of a bank, do we usually estimate its entire firm value? No; Yes Yes; Yes No; No Yes; No The revenues of Fred's stores grow at 7% each year. Fred's sister Sally owns Sally's Stores. Her stores grow at 9% each year. Sally achieves the high growth by reinvesting lots of capital back to her business and expanding stores. Her current invested capital is $10 million, and her overall return on invested capital is 12%. Fred's invested capital is also $10 million, and his overall return on invested capital is 17%. The opportunity costs of capital for Fred and Sally are the same (10%). Calculate the economic profit in year 1 and firm value today for Fred's stores. 1.0 for cconomic profit: 23.33 for firm value 0.7 for economic profit; 33.33 for firm value 1.0 for economic profit: 20.00 for firm value 0.2 for economic profit; 30.00 for firm value