1. BreakfastCo is a food company with three product divisions: branded cereals, generic cereals, and healthy breakfast options. Given the information in Exhibit 17.10, calculate the present value of the firm’s operations. What insights does this analysis give you?

EXHIBIT 17.10 BreakfastCo: Selected Financial Division Data Market data Branded cereals Generic cereals Healthy breakfast Revenuet+1, $ million 2,000 1,500 500 NOPLATt+1, $ million 600 150 200 Long-term revenue growth, % 4 5 7 Long-term return on invested capital, % 20 11 25 Long-term cost of capital, % 9 10 9