[bandhi]

No, I was really perplexed by it!

[bandhi]

Any ideas on the NPV sensitivity of sales? 511/6477*100=7% A, was that correct?

[bandhi]

I believe you were suppose to have used Gordons growth model. So payout was 55% and ROCE was 20% therefore 0.45×0.20= 0.09, 45% being the retained earnings, and from there you just applied 0.45*1.09/2.45+0.09 = … or something along those lines, but I might be wrong.

[bandhi]

Correct! (I hope)

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