LSI Logic has 1 billion shares outstanding, trading at \($25\) per share.

The firm also has \($5\) billion in debt outstanding. The cost of equity is 12.5% and the cost of debt, after taxes, is 5%. If the firm has \($3\) billion in cash outstanding and is fairly valued, estimate how much the firm earned in operating income in the current year. (The return on capital is 15%, the tax rate is 30%, and earnings are growing 6% a year in perpetuity.)