Consensus analyst forecasts of EPS for Home Depot are $5.80 and $6.00 for fiscal 2013 and fiscal 2014, respectively. Long-term growth is 5%. A dividend payout ratio 0.20. Based on this information, calculate the expected residual earnings per share for fiscal 2013 and fiscal 2014 assume a constant number of shares outstanding.

Calculate a common equity value per share for Home Depot at the end of 2012. Assume a residual earnings growth rate after 2017. G=0.04

Answer rating: 100% (QA)

Residual Earnings and Common Equity Valuation for Home Depot Given Information EPS Forecasts FY 2013 2014 580 600 respectively LongTerm Growth Rate G ... View the full answer