The following forecasts were made at the end of 2018 for a firm with CSE of $415 million and NFO of $720 million. The
The following forecasts were made at the end of 2018 for a firm with CSE of $415 million and NFO of $720 million. The required return on operations is 12%. 2019E Operating income (in millions) 187 Net Operating Assets (in millions) 1.214.45 Reol (in millions) 2020E 2021E 200.09 214.10 1299.46 1,390.42 2022E 229.08 1,487.75 What is the enterprise value of this firm by the end of 2018? (Hint: The growth rate in ReOl over the forecast period was steady at 7% and expected to be so forever).
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Terminal value Reol at the end of 2022 required return on operations growth rate 148775 012 00...
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Authors: Stephen Penman
5th edition
78025311, 978-0078025310
