Again this is because the Expected ROIC is less than the WACC In the Final

Again this is because the expected roic is less than

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Again, this is because the Expected ROIC is less than the WACC. In the Final scenario, Bell Memory's Expected ROIC improves because it becomes the division requires less capital to support its sales. This causes the ROIC to become greater than the WACC, leading to positive MVA.
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Proposal 1 Page 16 0.06 0.3 0.59 0.05
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Proposal 1 Page 17 0.15
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Final Plan Page 18 0.05 0.2 0.5 0.06
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Final Plan Page 19 0.16
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Preliminary Page 20 0.05 0.3 0.59 0.05
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Preliminary Page 21 0.15
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  • Fall '09
  • PETER
  • Balance Sheet, Generally Accepted Accounting Principles

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