Question 7 (25 points) The following is extracted from Dell's balance sheet at January 31, 2003 (in millions of dollars): Net financial assets Common equity (2,579 million shares outstanding) 9,167 4,873 Analysts are forecasting consensus earnings per share of $1.01 for the year ending January 31, 2004. a. Calculate net operating assets at January 31, 2003. b. Net financial assets are expected to earn an after-tax return of 40% in 2004. what is the forecast of operating income implicit in the analysts' eps forecast? c. Forecast the residual operating income for 2004 that is implicit in the analysts' forecast. Use a required annual return for operations of 9%. d. Dell's shares are currently trading at $34 each. With the above information, value the shares under the following set of scenarios using residual income methods: (i) Sales will grow at 5% per year after 2004. (ii) operating assets and operating liabilities with both grow at 5% per year after (ii) Operating profit margins (after tax) will be the same as these forecasted for 2004. e. Under the same scenarios, forecast free cash flow for 2004. 2003