Valuation of the Firm
	Chapter 11
1)	You are trying to estimate the growth rate for HipHop Inc.
	The firm earned $ 100 million in after-tax Operating Income on
	capital invested of $ 800 million last year.
	In addition, the firm reported Net Capital Expenditures of $ 25 million and
	and increase in Working Capital of $ 15 million.
a)	Assuming that the firm's Return on Capital (RoC) and Reinvestment Rate
	remain unchanged, estimate the expected growth rate in Operating Income next year.
b)	How would your answer to (a) change if you wer told that the firm's Return on Capital (RoC)
	next year will increase by 2.5%?
	i.e.., Next year's RoC = This year's RoC + 2.5%.