Question
Provided below are an analysts forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2019 for Amgen for
Provided below are an analysts forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2019 for Amgen for the period 2020 through 2023.
| ($ millions) | Reported 2019 | Forecast Horizon Period | |||
|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | ||
| Revenue: | $23,362.0 | $24,530.1 | $25,756.6 | $27,044.4 | $28,396.7 |
| NOPAT: | $8,260.1 | $8,673.1 | $9,106.7 | $9,562.1 | $10,040.2 |
| NOA: | $31,611.0 | $33,191.6 | $34,851.1 | $36,593.7 | $38,423.4 |
The following additional information is provided (dollar and share amounts in millions).
- Common shares outstanding: 591.400
- Net nonoperating obligations (NNO): $21,938.0
- Noncontrolling interest (NCI): $0.0
- Preferred stock: $0.0
- WACC: 6.5%
- Revenue growth in 2020-2023: 5.0%
- Terminal period growth: 2.0%
Use the information above to calculate the terminal period values of revenue, NOPAT, NOA, and ROPI. Do not round intermediate calculations. All values other than per-share amounts are shown in millions.
Use the ROPI valuation method (and the information above) to answer the following questions. Use the ROPI valuation method (and the information above) to answer the following questions
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TExES Business And Finance Secrets Study Guide
Authors: TExES Exam Secrets Test Prep Team
1st Edition
1516706862, 978-1516706860
