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Business, 05.05.2020 23:39 kaleyahkay7474

The following are forecasted residual operating income (ROPI) for Reed Corporation for 2017: Current Forecast Horizon Terminal ($millions) 2017 2018 2019 2020 2021 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% 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

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