Question: Abnormal Operating Income Growth Valuation (Easy) Using the forecasts in Exercise, forecast abnormal operating income growth and, from these forecasts, value the operations and the equity. The required return for operations is 10 .1 percent.

Exercise: Residual Operating Income Valuation (Easy) The following forecasts were made at the end of 2012 for a firm with net operating assets of $1, 135 million and net financial obligations of $720 million (in millions of dollars):

The required return for operations is 10.1 percent. Forecast residual operating income for these years and, from these forecasts, value the operations and the equity.