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An analyst predicted the following: 1. Sales of $1,276 million. 2. Core profit margin of 5%. 3. Asset turnover of 2.2. 4. Core other operating
An analyst predicted the following: 1. Sales of $1,276 million. 2. Core profit margin of 5%. 3. Asset turnover of 2.2. 4. Core other operating income and unusual items are zero. 5. Sales grow at 3%, and other forecasts remain constant in the future. The firm's required return for operations is 9%. Required: Calculate the implied operating income, beginning NOA, and RNOA for the next two years (ignore tax and other operating expenses)
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