Berry Corporation reports the following information. Year 7 Year 6 Cash $12,768 $11,592 Net operating working capital $4,920 $2,640 Net long-term operating assets $7,488 $7,440 Net nonoperating obligations $2,160 $1,680 Net operating profit after tax $1,560 $1,296 Weighted average cost of capital 7.0% 7.0% What is the company's residual operating income (ROPI) for Year 7? $ 666 $ 922 $1,454 $ 854 None of these are correct.
Berry Corporation reports the following information. Year 7 Year 6 Cash $12,768 $11,592 Net operating working capital $4,920 $2,640 Net long-term operating assets $7,488 $7,440 Net nonoperating obligations $2,160 $1,680 Net operating profit after tax $1,560 $1,296 Weighted average cost of capital 7.0% 7.0% What is the company's residual operating income (ROPI) for Year 7? $ 666 $ 922 $1,454 $ 854 None of these are correct.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Berry Corporation reports the following information.
|
|
Year 7 |
Year 6 |
|
Cash |
$12,768 |
$11,592 |
|
Net operating working capital |
$4,920 |
$2,640 |
|
Net long-term operating assets |
$7,488 |
$7,440 |
|
Net nonoperating obligations |
$2,160 |
$1,680 |
|
|
$1,560 |
$1,296 |
|
Weighted average cost of capital |
7.0% |
7.0% |
What is the company's residual operating income (ROPI) for Year 7?
|
$ 666 |
||
|
$ 922 |
||
|
$1,454 |
||
|
$ 854 |
||
|
None of these are correct. |
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