The following are forecasted residual operating income (ROPI) for Reed Corporation for 2017:
Assume a discount rate of 6%, an expected terminal growth rate of 2% and 2017 NNO of $17,314. What is the firm's equity value using the ROPI valuation model?
A) $71,130
B) $53,816
C) $67,988
D) $17,314
E) None of the above

Question

The following are forecasted residual operating income (ROPI) for Reed Corporation for 2017:
 Assume a discount rate of 6%, an expected terminal growth rate of 2% and 2017 NNO of $17,314. What is the firm's equity value using the ROPI valuation model?
A) $71,130 
B) $53,816 
C) $67,988 
D) $17,314 
E) None of the above

Quizplus · Accepted Answer

The Answer of The following are forecasted residual operating income (ROPI) for Reed Corporation for 2017:
 Assume a discount rate of 6%, an expected terminal growth rate of 2% and 2017 NNO of $17,314. What is the firm's equity value using the ROPI valuation model?
A) $71,130 
B) $53,816 
C) $67,988 
D) $17,314 
E) None of the above

The Following Are Forecasted Residual Operating Income (ROPI) for Reed