What are the projected amounts of net operating profit

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Problem - Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%?

Required -

a. What are the projected sales in Years 1 and 2?

b. What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2?

c. What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2?

d. What is the projected FCF for Year 2?

Reference no: EM132734477

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