The following annual data are available for a stock market index. 

The 2015 values in italics are estimates.

a. Calculate the 2015 values for those columns left blank.

b. On the assumption that g = 0.095, calculate k for 2015 using the formula k = (D/P) + g and show that k = 0.132425.

c. Using the 2015 values, show that P/E = 12.22.

d. Assuming a projection that 2016 earnings will be 25 percent greater than the 2015 value, show that projected earnings are expected to be 19.05.

e. Assuming further that the dividend payout ratio will be 0.40, show that projected dividends for 2016 will be 7.62.

f. Using the projected earnings and dividends for 2016, and the same k and g used in part b, show that the expected P/E for 2016 is 10.69.

g. Using these expected values for 2016, show that the expected price is 203.61.

h. Recalculate the values for 2016 P/E and P, using the same g = 0.095, but with (1) k = 0.14, (2) k = 0.13, and (3) k = 0.12.

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Year 2010 2011 2012 2013 2014 2015 End-of-Year Price (P) 107.21 121.02 154.45 137.12 157.62 186.24 Earnings (E) 13.12 16.08 16.13 16.70 13.21 15.24 Dividends (D) 5.35 6.04 6.55 7.00 7.18 6.97 P/E 8.17 7.53 9.58 8.21 11.93 (D/E) (%) 40.78 37.56 40.61 41.92 54.35 (D/P) (%) 4.99 4.99 4.24 5.11 4.56