2. Question 2 (20 points) The followings were extracted from a financial report for the fiscal year of 2025 (in millions of dollars): 2025 165 Operating asset Operating liabilities 78 Financial assets 40 Financial obligations 60 Interest income 3.6 Interest expense 5.8 Comprehensive income 12 a. What was operating income for 2025? (2 Points) b. What was common shareholders' equity at the end of 2025? (2 Points) C. Net operating assets (NOA) grew by 5% during 2025. Calculate free cash flow during 2025. (3 Points) d. What was the return on net operating assets (RNOA) for 2025? Use beginning of year balance sheet numbers in denominators. (3 Points) e. Forecast residual operating income for fiscal year 2026 by assuming that RNOA is expected to be the same as RNOA for 2025. Use a required return for operations of 10%. (3 Points) f. With the above information, value the equity at the end of year 2025 under the following set of scenarios using residual operating income valuation method. Use a required return for operations of 10%. (7 Points) (i) RNOA will continue in the future at the same level as in 2025. (ii) Net operating assets will grow at the same rate as in 2025. 2. Question 2 (20 points) The followings were extracted from a financial report for the fiscal year of 2025 (in millions of dollars): 2025 165 Operating asset Operating liabilities 78 Financial assets 40 Financial obligations 60 Interest income 3.6 Interest expense 5.8 Comprehensive income 12 a. What was operating income for 2025? (2 Points) b. What was common shareholders' equity at the end of 2025? (2 Points) C. Net operating assets (NOA) grew by 5% during 2025. Calculate free cash flow during 2025. (3 Points) d. What was the return on net operating assets (RNOA) for 2025? Use beginning of year balance sheet numbers in denominators. (3 Points) e. Forecast residual operating income for fiscal year 2026 by assuming that RNOA is expected to be the same as RNOA for 2025. Use a required return for operations of 10%. (3 Points) f. With the above information, value the equity at the end of year 2025 under the following set of scenarios using residual operating income valuation method. Use a required return for operations of 10%. (7 Points) (i) RNOA will continue in the future at the same level as in 2025. (ii) Net operating assets will grow at the same rate as in 2025