For a Given Company,next Year's NOPLAT Is $50

question 9

Multiple Choice

For a given company,next year's NOPLAT is $50.For the foreseeable future,the growth rate will be 3 percent,the ROIC will be 12 percent,and the weighted average cost of capital (WACC ) will be 10 percent.Using the key driver formula,calculate the value of the company.

• A)$536
• B)$1,667
• C)$714
• D)$500

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Definitions:

Shares

Units of equity ownership in a corporation, representing a portion of the company's capital stock.

Under IFRS

Refers to the accounting and reporting standards under the International Financial Reporting Standards framework, used globally.

Equity

The ownership interest held by shareholders in a corporation, represented by the residual assets of the company after deducting liabilities.

Shareholders' Funds

The total value of all a company's assets minus its liabilities, representing the equity ownership of shareholders.