Question: A financial analyst reported the following forecasts for EPS and DPS for GE Capital. The growth in abnormal earnings growth (AEG) is expected to be


A financial analyst reported the following forecasts for EPS and DPS for GE Capital. The growth in abnormal earnings growth (AEG) is expected to be constant at 5.5% after 2017. Cost of equity is 9% 2013 2014 2015 2016 2017 EPS 1.43 1.58 1.73 1.92 2.11 DPS 0.54 0.62 0.69 0.74 0.87 Which of the following is closest to the cum-dividend earnings for the year 2017? 1.63 1.79 2.58 2.38 4 2.53 None of the above O Which of the following is closest to the terminal value of AEG for the year 2017? O 1.63 O 1.79 O 2.58 2.38 2.53 O None of the above W Which of the following is closest to the price per share at the end of the year 2012? O 1.43 O 1.79 O 38.57 22.68 2.53 O None of the above 4 A financial analyst reported the following forecasts for EPS and DPS for GE Capital. The growth in abnormal earnings growth (AEG) is expected to be constant at 5.5% after 2017. Cost of equity is 9% 2013 2014 2015 2016 2017 EPS 1.43 1.58 1.73 1.92 2.11 DPS 0.54 0.62 0.69 0.74 0.87 Which of the following is closest to the cum-dividend earnings for the year 2017? 1.63 1.79 2.58 2.38 4 2.53 None of the above O Which of the following is closest to the terminal value of AEG for the year 2017? O 1.63 O 1.79 O 2.58 2.38 2.53 O None of the above W Which of the following is closest to the price per share at the end of the year 2012? O 1.43 O 1.79 O 38.57 22.68 2.53 O None of the above 4
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