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The following information is from the financial statements for the Vitamin Shoppe. 20132014 Net Operating Assets454.651547.963 Common...
The following information is from the financial statements for the Vitamin Shoppe.
2013 2014
Net Operating Assets 454.651 547.963
Common Equity 528.34 551.934
Sales 1213.046
Core operating income (after tax) 61.546
Assume the following are forecasts about Vitamin Shoppe's sales growth:
Growth rate 2014-2015: 7%, ATO=2.67, Operating Income Profit Margin=5%
Growth rate: 2016-2018:4%, ATO=2.90, Operating Income Profit Margin= 6%
Growth rate after 2018: 2%, ATO=3.00, Operating Income Profit Margin =6%
Further assume: WACC =8.5%; Profit Margin and ATO after 2018 will remain 3.00 and 6%, forever and Residual Operating Income will also grow at 6%.
Find the value of NOA and Common Equity.