c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year.Assume a statutory tax rate of 25%.NOPAT (Round your answer to the nearest million dollar.) $NOPM (Round your answer to one decimal place.)20173,202 * $0% X20160 x0% X Identifying Operating and Nonrecurring Income ComponentsFollowing is the The Dow Chemical Company income statement.($ millions) For Year Ended December 31Net salesCost of salesResearch and development expensesSelling, general, and administrative expensesAmortization of intangiblesRestructuring, goodwill impairment and asset-related charges-netIntegration and separation costsAsbestos-related chargeEquity in earnings of nonconsolidated affiliatesSundry income (expense)-netInterest expense and amortization of debt discountIncome from continuing operations before income taxesProvision (Credit for income taxes on continuing operations)Income from continuing operations, net of taxLoss from discontinued operations, net of taxNet income20172016$62,484 $48,15850,414 37,6402,110 1,5844,0212,9561,0135443,2805951,1013491,1137644429661,4521,0828581,193 4,413(476)91,6694,404(77)$1,592 $4,404

An operating expense is an expense that a business incurs through its normal business operations..…

Answered: c. Compute net operating profit after…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2020 for Abbott Laboratories. ($ millions) Reported 2020 2021 Revenue: NOPAT: NOA: Forecast Horizon Period 2022 2023 $34,608.0 $36,684.5 $38,885.5 $41,218.7 $43,691.8 $4,774.4 $5,060.9 $5,364.5 $5,686.4 $6,027.6 $44,579.0 $47,253.7 $50,089.0 $53,094.3 $56,280.0 2024 Terminal Period The following additional information is provided (dollar and share amounts in millions). Common shares outstanding: 1,771.230 Net nonoperating obligations (NNO): $11,576.0 Noncontrolling interest (NCI): $219.0 Preferred stock: $0.0 WACC: 4.0% Terminal growth: 2.0% According to the DCF model, what is the total value of the firm? According to the DCF model, what is the value per share of common stock? Use the discounted cash flow (DCF) method to answer the following questions. Do not round intermediate calculations. All values other than per-share amounts are shown in…
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c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year. Assume a statutory tax rate of 25%. NOPAT (Round your answer to the nearest million dollar.) $ NOPM (Round your answer to one decimal place.) 2017 3,202 * $ 0% X 2016 0 x 0% *