An analyst calculates the following financials at year-end 30th of June 2020 for some company: Net operating liabilities of $1,243 million Net financial assets of $4,572 million The analyst also forecasts that during the period 2020-2021 the firm will earn a forward return on net operating assets (RNOA) of 8% and a residual operating income (ReOI) of $91.4 million. The forward RNOA is equal to the forecasted OI during 2020-2021 divided by the beginning of the period NOA, i.e. ReOIt / NOAt-1

a) Calculate the required cost of operations (the WACC) that the analyst is using in the residual operating income forecast for the period 2020-2021.

b) The analyst forecasts that the expected residual operating income earned during 2020-2021 will continue in perpetuity. Calculate the expected intrinsic value of the equity in as at 30 June 2020