Assume that you have full year forecasted financials for 2019 - 2024 (planning period) and...

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Accounting

Assume that you have full year forecasted financials for 2019 - 2024 (planning period) and the following financials for after the planning period:

  • NOPAT (last year of planning period) = 90
  • Long term growth rate = 2%
  • Long term ROCB = 11%
  • WACC = 8%

What is the present value (at December 2018) of the terminal value of this company using the Key Value Driver Formula? Please round your answer to the nearest whole number and provide your answer in USD millions without a dollar sign (e.g. 100 instead of $100).

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