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 | $171,345 | $10,101 | $57,008 | $87,956 |
| Weighted average cost of capital (WACC) | 7.2% | 11.0% | 8.8% | 13.0% |
| 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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Modelling And Forecasting Financial Data Techniques Of Nonlinear Dynamics
Authors: Abdol S. Soofi, Liangyue Cao
1st Edition
0792376803, 1461509319, 9780792376804, 9781461509318
