What are the two most important inputs

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Question - Valuation - Consider a successful current Norwegian growth company with the following inputs:

ROIC 10%

Growth 12%

WACC 6%

NOPLAT 100

Debt 2,000

a) Calculate TEV. Make all necessary assumptions consistent with the empirical evidence on growth.

b) Central bank considers 100 basis points increase in the risk free rate. What effect does it have on TEV? State in percentage.

c) How many NOK does it cost to acquire 1 NOK of NOPLAT?

d) What are the two most important inputs in the sensitivity analysis here?

Reference no: EM133005144

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