An analyst calculates residual operating income of $35.7 million from financial statements for 2009, using a required
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An analyst calculates residual operating income of $35.7 million from financial statements for 2009, using a required return for operations of 10 percent. She also forecasts residual operating income at the same level for 2010 and years after on net operating assets of $1,257 million at the end of 2009.
a. What is the analyst's forecast of operating income for 20l0?
b. What is the value of the operations based on these forecasts?
c. What is the forward enterprise P/E ratio implied by the forecasts?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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a ReOI 2010 OI 2010 010 1257 357 million Therefore OI 2010 ...View the full answer
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