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Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in year 1 and by 5% in year 2. Its
Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in year 1 and by 5% in year 2. Its operating profitability ratio (OP) is 10% and its capital requirement ration (CR) is 80%.
a. What are the projected sales in year 1 and 2?
b. what are the projected amounts of net operating profit after taxes (NOPAT) for years 1 and 2?
c. What are the projected amounts of total net operating capital (OpCap) for years 1 and 2?
d. What is the projected FCF for year 2?
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