lCompany Alpha uses Key Value Drivers (KVD) formula and the following data to estimate the continuing value. NOPLATt+1 = $200 g = 4% RONIC = 3% WACC = 6% (a) Calculate the continuing value in year t. (4 marks) NOPLAig (1 1,33%?) CV: = \"6466 g (b) Explain whyr this formula might work well for an established company, but yet is inappropriate for either a startup or rapidly growing company. (6 marks) Company Beta uses Economic Prot formula and the following information to estimate the continuing value. 0 The invested capital at the end of the explicit forecast period will be $2,000. 0 NOPLAT in the year following the explicit forecast period is expected to be $500 and is expected to grow at 2% per year. The RONIC is expected to be 10%. 0 The cost of capital is 7%. (c) What is the continuing value (CV) after the explicit forecast period? (10 marks) IC+(ROICt+1 - WACC) PV( Economic Profitt+2) CV = - + WACC WACC- g g NOPLAT++1 (RONIC) (RONIC - WACC) PV(Economic Profitt+2) = WACC