Question: 2. Ca the c te 2. Calculate the estimated value per share using the Change in Residual Earnings Method: Complete the chart: EPS DPS Difference

2. Calculate the estimated value per share using the Change in Residual

2. Ca the c te

2. Calculate the estimated value per share using the Change in Residual Earnings Method: Complete the chart: EPS DPS Difference BPS ROCE 2010 $15.00 2011 $3.00 .25 1 2012 $3.60 .25 2 2013 $4.10 .30 3 2014 $5.50 .35 Residual Earnings Change in RE PV Change RE PVofCV Total Capitalized VPS Show RE Calculation: below RE 2011: RE 2012: RE 2013: RE 2014: The required return is 8% and the growth rate is 2.5% after 2014. CV uses the (1+ g) adjustment A. B. Complete the Table: Calculate Value per Share using the change in residual earnings model:

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