The consulting company Maggi has been hired to value the company Bolli AS, Bolli expects one operating profit of NOK 400 million in 2023. The company is expected to grow by 2.25% in year, and achieves a 9% return on invested capital. Bolli is 100% equity financed and the cost of equity is 10%. a) What is the investment rate for Bolli? b) What is the value of the company in 2022? c) Maggi believes that growth in the future will be higher than 2.25%, they believe that it is more likely to be 4.5%. What is the value of Bolli in 2022 if this growth is used as a basis. the value calculation?
The consulting company Maggi has been hired to value the company Bolli AS, Bolli expects one operating profit of NOK 400 million in 2023. The company is expected to grow by 2.25% in year, and achieves a 9% return on invested capital. Bolli is 100% equity financed and the cost of equity is 10%. a) What is the investment rate for Bolli? b) What is the value of the company in 2022? c) Maggi believes that growth in the future will be higher than 2.25%, they believe that it is more likely to be 4.5%. What is the value of Bolli in 2022 if this growth is used as a basis. the value calculation?
Chapter11: Capital Budgeting Decisions
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The consulting company Maggi has been hired to value the company Bolli AS, Bolli expects one operating profit of NOK 400 million in 2023. The company is expected to grow by 2.25% in year, and achieves a 9%
a) What is the investment rate for Bolli?
b) What is the value of the company in 2022?
c) Maggi believes that growth in the future will be higher than 2.25%, they believe that it is more likely to be 4.5%.
What is the value of Bolli in 2022 if this growth is used as a basis. the value calculation?
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