What is the value of the operations based on these forecasts

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Assume that a company’s dividends per share are projected to grow at 2% each year, its next year’s dividends per share is $1.20, and its cost of equity capital is 5%. Estimate the company’s per share stock price.

An analyst calculates residual operating income of $35.7 million from financial statements for 2012, using a required return for operations of 10 percent. She also forecasts residual operating income at the same level for 2013 and years after on net operating assets of $1,257 million at the end of 2012.

What is the analyst's forecast of NOPAT for 2013?

What is the value of the operations (enterprise value) based on these forecasts?

Reference no: EM131593004

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