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Business, 14.04.2020 16:53 briannabarreraswestb

5. (9 points) Use the following information (in millions) and the residual operating income (ROPI) model, to value the equity of a small publicly-traded company. The company’s stock is currently trading at $53 per share. Cumulative present value of horizon period ROPI $50,100 Present value of terminal period ROPI 245,900 Net operating assets, beginning of year 124,000 Net nonoperating obligations 33,500 Number of shares outstanding, in millions 6,184 Would you purchase shares of this stock at $53? Why or why not?

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5. (9 points) Use the following information (in millions) and the residual operating income (ROPI) m...
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