An analyst prepares the following reformulated balance sheet (in millions):

Core NOPAT for 2012 was $990 million. The required return for operations (rw)is 9 percent.

For ease, use beginning-of-year balance sheet numbers were pertinent in calculations 2012 2011

.A.What was the core return on net operating assets (Core RNOA) for 2012?

B.Calculate a growth rate for residual operating income for 2013based on the growth in net operating assets.

C.Calculate residual operating income for 2013.

D.What is the value of the operations (enterprise value)?

E.What is the value of common equity?

\begin{tabular}{lcc} \hline & 2012 & 2011 \\ \hline Net operating assets & $9,682 & $9,400 \\ Net financial obligations & 1,987 & 1,876 \\ Common shareholders' equity & $7,695 & $7,524 \\ \hline \end{tabular}