Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. how will the abnormal profit calculations in table

How will the abnormal profit calculations in table 8.4 change if the cost of equity...

60.1K

Verified Solution

Question

Finance

How will the abnormal profit calculations in table 8.4 change if the cost of equity assumption is changed to 10%

image

TABLE 8.4 Performance forecasts for Hennes & Mauritz Fiscal year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Equity valuation (SEK millions) Abnormal profit 27,139.3 25,356.8 21,114.3 16,405.7 16,897.8 Abnormal ROE (%) 19,092.8 33.0 18,048.1 28.7 25.4 20.4 15.4 23,456.0 36.6 21,711.1 4,363.2 27,798.4 39.1 25,797.1 4,342.4 28,782.7 36.0 25,856.0 984.2 28,338.4 32.3 26,621.5 -444.2 Free cash flow to equity 26,967.6 -1,199.1 27,025.7 -1,782.5 24,848.9 -4,242.4 15.4 21,3117 -4,708.7 21,951.1 492.2 Abnormal profit growth Asset valuation (SEK millions) 24,826.0 24,214.0 22,799.7 20,604.8 16,008,0 11,059,1 11,390.9 Abnormal NOPAT Abnormal ROA (%) 15,230.7 11.7 19,784.9 13.5 23,923.8 14.7 13.5 12.0 10.5 9.0 6.8 4.5 4.5 Free cash flow from operations 17,682.1 15,637.4 19,155.8 17,862.7 19,881.3 21,846.5 23,693.2 23,646.7 21,273.1 21,911.3 Abnormal NOPAT growth 4,554. 1 4 ,138.9 902.3 -612.0 -1,414.3 -2,195.0 -4,596.7 -4,948.9 331.8 Discount rates: Equity 0.928 0.930 0.861 0.865 0.798 0.805 0.740 0.749 0.687 0.697 0.637 0.648 0.591 0.603 0.548 0.561 0.509 0.522 0.472 0.485 Net operating assets TABLE 8.4 Performance forecasts for Hennes & Mauritz Fiscal year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Equity valuation (SEK millions) Abnormal profit 27,139.3 25,356.8 21,114.3 16,405.7 16,897.8 Abnormal ROE (%) 19,092.8 33.0 18,048.1 28.7 25.4 20.4 15.4 23,456.0 36.6 21,711.1 4,363.2 27,798.4 39.1 25,797.1 4,342.4 28,782.7 36.0 25,856.0 984.2 28,338.4 32.3 26,621.5 -444.2 Free cash flow to equity 26,967.6 -1,199.1 27,025.7 -1,782.5 24,848.9 -4,242.4 15.4 21,3117 -4,708.7 21,951.1 492.2 Abnormal profit growth Asset valuation (SEK millions) 24,826.0 24,214.0 22,799.7 20,604.8 16,008,0 11,059,1 11,390.9 Abnormal NOPAT Abnormal ROA (%) 15,230.7 11.7 19,784.9 13.5 23,923.8 14.7 13.5 12.0 10.5 9.0 6.8 4.5 4.5 Free cash flow from operations 17,682.1 15,637.4 19,155.8 17,862.7 19,881.3 21,846.5 23,693.2 23,646.7 21,273.1 21,911.3 Abnormal NOPAT growth 4,554. 1 4 ,138.9 902.3 -612.0 -1,414.3 -2,195.0 -4,596.7 -4,948.9 331.8 Discount rates: Equity 0.928 0.930 0.861 0.865 0.798 0.805 0.740 0.749 0.687 0.697 0.637 0.648 0.591 0.603 0.548 0.561 0.509 0.522 0.472 0.485 Net operating assets

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students