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For a given company, next year's NOPLAT is $375. For the foreseeable future, the growth rate will be 8.5 percent, the ROIC will be 12

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For a given company, next year's NOPLAT is $375. For the foreseeable future, the growth rate will be 8.5 percent, the ROIC will be 12 percent, and the WACC will be 10 percent. Using the key driver formula, calculate the continuing value of the company. 3. a) $7,291 b) $4,000 c) $6,667 d) $3,333 4. Which of the folng are strategies that will mostlikely not support a sustainable ROIC? 1. Extend life cycles of products and services. I1. Offer generic products. II. Implement a temporary cost-reduction program. IV. Use established brands to launch new products. a) I and IV only. b) 1, 11, and IV only c) II and IIl only d) I, I, 111, and IV 5. Historically, the rates of growth of firms tend to be less stable than their ROICs. a) True b) False Which of the following are not types of organic revenue growth? I. Mergers. II. Acquisitions. I11. Portfolio momentum. IV. Market share performance 6. a) I and Il only. b) I, II, and IIl only. c) Il and IV only. d) Ill and IV only

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