Question: A No-growth Forecast and a Simple Valuation (Easy) An analyst calculates residual operating income of$35.7 million from financial statements for 2012, using a required return for operations of 10 percent. She also forecasts residual operating income at the same level for 2013 and years after on net operating assets of $1,257 million at the end of2012.
a. What is the analyst's forecast of operating income for 2013?
b. What is the value of the operations based on these forecasts?
c. What is the forward enterprise PIE ratio implied by the forecasts?