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The following are forecasted residual operating income (ROPI) for Reed Corporation for Year 7: Current Forecast Horizon Terminal ($millions) Year 7 Year 8 Year 9
The following are forecasted residual operating income (ROPI) for Reed Corporation for Year 7: Current Forecast Horizon Terminal ($millions) Year 7 Year 8 Year 9 Year 10 Year 11 Year Residual operating income (ROPI) $1,999 $2,099 $2,204 $2,314 $2,430 $2,479 Assume a discount rate of 6%, an expected terminal growth rate of 2%, 2017 NOA of $29,896, and 2017 NNO of $17,314. What is the firms equity value using the ROPI valuation model? Group of answer choices $72,777 $79,584 $17,314 $56,899 None of these are correct
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