E13.7. Residual Operating Income Valuation (Easy) The following forecasts were made for a firm with net operating assets of $1,135 million and net financial obligations of $720 million at the end of 2005 (in millions of dollars): 2006E 2007E 2008E 2009E Operating income 187.00 200.09 214.10 229.08 Net operating assets 1,214.45 1,299.46 1,390.42 1,487.75 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.