You are the manager of the company Moonbucks, and looking to undertake a valuation. Moonbucks has reached steady state, so its RONIC and WACC do not change over time. Its WACC is 10%. (a) Below is the income statement of Moonbucks (in millions). What is Moonbuck's NOPLAT? (Assume that its marginal tax rate is equal to its average tax rate, and can therefore be computed as (income taxes)/(earnings before income taxes)) Net revenues Cost of sales 10,707 4,459 Store operating expenses Other operating expenses Depreciation and amortization 3,551 293 510 General and admin expenses 570 Total operating expenses 9,383 Operating income 1,324 Dividend income 40 Interest income 50 Interest expense (33) Earnings before income taxes. 1,381 Income taxes Net earnings 470 911 2 (b) Suppose that in order to maintain a free cash flow growth rate of 10% each, Moon- bucks would have to maintain a 50% investment rate. What is the RONIC of Moon- bucks? (c) What's the valuation of Moonbucks (by multiples of NOPLAT) if you decide to maintain an investment rate of 20% forever? How would this valuation change if you increased the investment rate? Explain.