Question 6 10 points The following information is from refor

Question 6 (10 points) The following information is from reformulated financial statements (in millions of dollars): 2007 2008 2,400 1.0001.200 Net operating assets (NOA) 1,900 Net financial obligations (NFO A. B. If Operating income (O1) is 280S, Caleulate RNOA for 2008; use the average Calculate ROCE for 2008; use average book value in the denominator. net operating assets in the denominator.

Solution

A B C=(A+B)/2 2007 2008 Average D Net Operating Assets 1900 2400 2150 E Net Financial Obligation 1000 1200 1150 F=D-E (Capital Employed)Equity 900 1200 1000 Year 2008 G Operating Income(OI) 280 H Average Capital Employed 1000 I=G/H ROCE in 2008 0.2800 (28%) J Average net operating asset 2150 K=G/J RNOA in 2008 0.1302 (13%)