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Men Styles Pare Dietate Editor Question 1 (25 Points) Use a cost of capital for operations of 9%. Net Operating Assets in 2002- $3160 Sales

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Men Styles Pare Dietate Editor Question 1 (25 Points) Use a cost of capital for operations of 9%. Net Operating Assets in 2002- $3160 Sales revenue is forecasted to grow at a 6% rate per year in the future, on a constant asset tumover of 1.25. Operating profit margins of 14% are expected to be earned each year. a. (5 points) Forecast return on net operating assets (RNOA) for 2003. b. (5 points) Forecast residual operating income for 2003. c. (5 points) Value the shareholders' equity at the end of the 2002 fiscal year using residual income methods. d. (5 points) Forecast abnormal growth in operating income for 2004

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