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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- Fall '11
- Accounting, Weighted mean, Weighted average cost of capital, 2%, $100 million, 6 percent