An analyst prepares the following reformulated balance sheet (in millions): Core NOPAT for 2012 was $990 million. The required return for operations (rw) is 9 percent. For ease, use beginning-of-year balance sheet numbers where pertinent in calculations.
1. Calculate a growth rate for residual operating income for 2013 based on the growth in net operating assets.
2. What is the value of common equity?