Question: Estimate the intrinsic value for 2019 for Royal, Inc. using the residual income (RIM) model given the following information. Your estimation period is the most

  1. Estimate the intrinsic value for 2019 for Royal, Inc. using the residual income (RIM) model given the following information. Your estimation period is the most recent five years ending in 2018. You have an opportunity cost of 15% (table)

2013

2014

2015

2016

2017

2018

2019

2020

VALUE LINE PUB. LLC

8.06

7.89

7.91

8.70

8.79

9.38

9.70

10.05

Sales per sh

2.77

2.32

1.96

2.13

2.82

3.07

3.20

3.35

Cash Flow per sh

1.65

1.41

1.11

1.17

1.73

1.87

2.05

2.25

Earnings per sh A

.96

1.04

1.12

1.20

1.28

1.36

1.44

1.52

Divds Decid per sh

.19

.19

.23

.30

.33

.36

.40

.40

Capl Spending per sh

11.92

11.33

10.48

9.81

11.92

11.09

10.55

10.75

Book Value per sh

a_$42.15

b_$15.90

c_$10.43

d_$31.67

e_$21.34

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