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For year 2 0 2 2 , a company reports net operating profit after taxes ( NOPAT ) of $ 3 2 , 9 1
For year a company reports net operating profit after taxes NOPAT of $ million. The following additional information is gathered from its financial statements in millions:
End of End of
Operating assets $ $
Nonoperating assets $ $
Operating liabilities $ $
Nonoperating liabilities $ $
a Assuming a weighted average cost of capital of what was the companys residual operating income ROPI for year
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b At what level of WACC would the company not report positive ROPI? In other words, what value of WACC would cause expected NOPAT to equal actual NOPAT?
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