An analyst presents you with the following preform a (in millions of dollars) that gives her forecast

Question:

An analyst presents you with the following preform a (in millions of dollars) that gives her forecast of earnings and dividends for 2010-2014. She asks you to value the 1,380 million shares outstanding at the end of 2009, when common shareholders' equity stood at $4,310 million. Use a required return for equity of 10 percent in your calculations.

a. Forecast book value, return on common equity (ROCE), and residual earnings for each of the years2010-2014.
b. Forecast growth rates for book value and growth in residual earnings for each of the years 2011-2014.
c. Calculate the per-share value of the equity from this preform a. Would you call this a Case 1, 2, or 3 valuation?
d. What is the premium over book value given by your calculation? What is the P/Bratio?