The following forecasts were made at the end of 2012 for a firm with net operating assets
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The following forecasts were made at the end of 2012 for a firm with net operating assets of $1,135 million and net financial obligations of $720 million (in millions of dollars):
The required return for operations is 10.1 percent. Forecast residual operating income for these years and, from these forecasts, value the operations and the equity.
Transcribed Image Text:
2016E 2013E 2014E 2015E Operating income Net operating assets 200.09 1,299.46 229.08 1,487.75 187.00 1,214.45 214.10 1,390.42
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Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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