Following are the balance sheet and income statement for Goldsmith Inc.
Required:
a. Calculate net operating profit after tax (NOPAT) for 2017. Assume that the company's statutory tax rate is 37%.
b. Calculate net operating assets (NOA) for 2016 and 2017.
c. What is the free cash flows to the firm (FCFF) for 2017 for the Goldsmith?
d. What is the residual operating income (ROPI) for 2017 for the Goldsmith? The company's weighted average cost of capital is 8.0%.
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