Why Companies Are Worth What They're Worth

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Numeric AnswereasyValuation

Two companies each have NOPAT = $100m. Company A must reinvest 60% of NOPAT each year to sustain its growth; Company B must reinvest 30%. If both are in a “steady state” with WACC = 10% and growth = 0%, what is the value difference (Enterprise Value) in $ billions? Ignore cash/debt. Enter the difference (B minus A).

Enter EV difference in $ billions (e.g., 2.4)

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