An analyst develops the following pro forma at the end of 2009 for a firm that uses a 9 percent hurdle rate for its operations (in millions);

a. Forecast the cum-dividend operating income growth rate for 2011.
b. Using the two-stage growth model 14.7, value the equity with a long-term growth rate of 4 percent.
c. What is the forward enterprise price/earnings ratio implied by thevaluation?

2009A 2010E 2011E $ 782 868 $6,400 ,848 7,190 Operating income Net operating assets Net financial obligations Common equity 756 5,644