Business, 18.12.2019 21:31 daniellekennedy05

The following are forecasted residual operating income (ropi) for reed corporation for 2017: current forecast horizon terminal ($millions) 2017 2018 2019 2020 2021 terminal

year residual operating income (ropi) $2,499 $2,624 $2,755 $2,893 $3,038 $3,099

assume a discount rate of 6%, an expected terminal growth rate of 2%, 2017 noa of $29,896, and 2017 nno of $17,314. what is the firm’s equity value using the ropi valuation model?

select one: a. $71,130 b. $53,816 c. $67,988 d. $17,314 e. none of the above

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