(in millions) Reported 2017 Sales $21,167 NOPAT NOA Select one: O O O O 3,306 11,137 a. $83.14 b. $71.32 C. $80.67 d. $75.41 2018 $22,395 3,498 11,787 2019 $23,694 3,701 12,471 Horizon Period 2020 $25,068 3,916 13,194 2021 Terminal Period $26,787 $26,522 4,143 13,959 Assuming a discount rate (WACC) of 7%, a terminal period growth rate of 1%, common shares outstanding of 754.5 million, and net nonoperating obligations (NNO) of $1,037 million, estimate the value of a share of BM's common stock using the residual operating income (ROPI) model as of December 31, 2017. 4,184 14,098
(in millions) Reported 2017 Sales $21,167 NOPAT NOA Select one: O O O O 3,306 11,137 a. $83.14 b. $71.32 C. $80.67 d. $75.41 2018 $22,395 3,498 11,787 2019 $23,694 3,701 12,471 Horizon Period 2020 $25,068 3,916 13,194 2021 Terminal Period $26,787 $26,522 4,143 13,959 Assuming a discount rate (WACC) of 7%, a terminal period growth rate of 1%, common shares outstanding of 754.5 million, and net nonoperating obligations (NNO) of $1,037 million, estimate the value of a share of BM's common stock using the residual operating income (ROPI) model as of December 31, 2017. 4,184 14,098
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
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Question
Bha
Transcribed Image Text:(in millions) Reported 2017
Sales
$21,167
NOPAT
3,306
NOA
11,137
Select one:
O
O
O
O
2018
$22,395
3,498
11,787
a. $83.14
b. $71.32
c. $80.67
d. $75.41
2019
$23,694
3,701
12,471
Horizon Period
2020
$25,068
3,916
13,194
2021 Terminal Period
$26,787
$26,522
4,143
13,959
Assuming a discount rate (WACC) of 7%, a terminal period growth rate of 1%, common shares outstanding of 754.5 million, and net nonoperating obligations (NNO) of $1,037 million, estimate the value of a share of
3M's common stock using the residual operating income (ROPI) model as of December 31, 2017.
4,184
14,098
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