Question
Computing Present Value of Terminal Residual Operating Income Use the following data to compute the present value of the terminal period ROPI for each of
Computing Present Value of Terminal Residual Operating Income
Use the following data to compute the present value of the terminal period ROPI for each of the four firms A through D. Assume a forecast horizon of four years.
| A | B | C | D | |
|---|---|---|---|---|
| Terminal period ROPI | $208,011 | $46,767 | $93,674 | $124,622 |
| Weighted average cost of capital (WACC) | 8.1% | 11.9% | 9.7% | 13.9% |
| Terminal growth period rate | 2.0% | 1.0% | 2.5% | 2.0% |
Do not round until your final answers. Round your answers to the nearest whole number.
| A | B | C | D | ||||
|---|---|---|---|---|---|---|---|
| PV of terminal period ROPI | $Answer
| $Answer
| $Answer
| $Answer
|
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Public School Finance Decoded
Authors: Jay C. Toland
1st Edition
1475827679, 978-1475827675
