13-2 BV - 13-2 BV you decide to value a steady-stare...

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Unformatted text preview: 13-2 BV you decide to value a steady-stare company using probability-weighted scenario analysis. In Scenario 1, NOPLAT is expected to grow at 6 percent and ROIC equals 16% . In Scenario 2, NOPLAT is expected to grow at 2% and ROIC equals 8%. Next years NPLAT is expected to equal $100 million and the weighted average cost of capital is 10%. Using the key value driver formula, what is the enterprise value in each scenario? For each scenario is equally likely, what is the enterprise value for the company? ...
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