$13$ Question $2\mathrm{.}3$ Reverse engineering growth rates $(2$ points$)$

The share of Techcompany Inc was traded at $$60$ with a price$-$to$-$book value of $3$ at the end of

The forecast for $2023$ on earnings per share is $$4.$ Your required return for equity is $10\%.$

What is the markets estimated growth rate for residual earnings for the period after $2023?$

Give your answer in $\%$ and with two decimals:

Maximum marks: $2$

$14$ Question $2\mathrm{.}4-$ Forecasting and valuation $(2$ points$)$

Consider the attached reformulated balance sheet and income statement for a firm's $2022$ fiscal

year with a tax rate of $30\%.$ Asset turnover is $1\mathrm{.}19$ and the operating profit margin is $14\mathrm{.}99\%,$ both

are constant over the years. Assuming that the sales forecast is $8\%$ per year, and the required

return is $9\mathrm{.}8\%$ per year, calculate the following.

What is the forecasted residual operating income $($ReOI$)$ for $2023$: