The following numbers were calculated from the financial statements of Bellas Bone World (BBW) for 2019.

Net Operating Assets = $102,800,000 (102.8 million)

Net Financial Obligations = $20,700,000 (20.7 million)

Asset Turnover (2019) = 2.1

Core Operating Profit Margin, after tax = 7.95%

1. Calculate the core return on net operating assets for 2019. Use two places beyond the decimal and format as a percent. Do not include a percent sign.

2. You forecast that the core profit margin and asset turnover in the future will be the same as in 2019. You also forecast that sales will grow 4% per year in the future. The firms required return for its operations is 7.5%.

Calculate the enterprise price-to-book ratio. Format as a percentage with two places beyond the decimal.

Calculate the enterprise value. Format as a dollar value (not a decimal). Round to the nearest dollar. Do not use commas or a dollar sign.

3. The firms 46 million outstanding shares are traded at $4.20 each. Given your forecasts, what is your expected rate of return from buying the firm at this price? . Format as a percentage with two places beyond the decimal. Do not include a percent sign.