I only need help with E2 and F, I am using excel and could use assistance how to come up with this answer in excel formula. Please and thank you!

Encore International In The World of trendsetting fashion, instinct and marketing savvy are prerequisites to success.Jordan Ellis had both. During2015, his international casual-wear company,Encore, rocketed to $300million in sales after 10 years in business. His fashion linecovered the young woman from head to toe with hats, sweaters, dresses,blouses,skirts, pants, sweatshirts, socks, and shoes. In Manhattan, there was an Encore shopevery five or six blocks, each featuringa different color. Some shops showed the entireline in mauve, and others featured it in canary yellow.Encore had made it. The company's historical growthwas so spectacular that no onecouldhave predicted it. However, securities analysts speculated that Encore could notkeep up thepace. They warnedthat competition is fierce in the fashionindustry andthat the firm might encounter little or no growthin the future. They estimatedthatstock holders also shouldexpectno growth in future dividends.Contrary to the conservative securities analysts, Jordan Ellis believed that the companycouldmaintain a constant annual growth rate in dividends per share of 6%in thefuture, or possibly 8% for the next 2 years and 6% thereafter. Ellis based his estimateson an established long-term expansion plan into European and Latin American markets.Venturing into these markets was expected to cause the risk of the firm, as measuredby the risk premium on its stock, to increase immediately from 8.8% to 10%. Currently,the risk-free rate is 6%.In preparing the long-term financial plan, Encore's chief financial officer has assigned ajunior financial analyst, Marc Scott, to evaluate the firm's current stock price. He hasasked Marc to consider the conservative predictions of the securities analysts and theaggressive predictions of the company founder, Jordan Ellis.Marc has compiled the following 2015 financial data to aid his analysis.

Data item 2015value

Earnings per share (EPS)$6.25

Price per share of common stock $40.00

Book value of common stockequity $60,000,000

Total common shares outstanding 2,500,000

Common stock dividend pershare $4.00

TODO

a.What is the firm's current book value per share?

b.What is the firm's currentP/E ratio?

c.(1) What is the current required return for Encore stock?

(2) What will be the new required return for Encore stock assuming that the firmexpands into European and Latin American markets as planned?

d.If the securities analysts are correct and there is no growth in future dividends, whatwill be the value per share of the Encore stock ?(Note: Use the new required return on the company's stock here.)

e.(1)lf Jordan Ellis'spredictions are correct, what will be the value per share ofEncorestock if the firm maintains a constant annual 6% growth rate in futuredividends?(Note: Continue to use the new required return here.)

(2)If Jordan Ellis's predictions are correct, what will be the value per share of Encore stock if the firm maintains a constant annual 8% growth rate in dividendsper share over the next 2 years and 6% thereafter?

f.Compare the current (2015) price of the stock and the stock values ina, d, and e.Discusswhy these values may differ.Which valuation method do you believe mostclearly represents the true value of the Encore stock?

1 A) Book value per share? 2 BV value of common stock/Total common shares outstanding 3 60000000 2500000 $ 24.00 4 5 B) Firms current P/E Ratio? 6 Price per share of common stock/EPS 7 $40.00 6.25 $6.40 9 C) Current required return for Encore? (1) 10 Risk Free %+Market Risk 6% 8.80% 14.8% 12 New rate (2) 13 14 15 D) Value per share on Encores stock (using new required rate of return)? 16 Dividends per shareew required rate of return 17 $ 4.00 18 19 E) Value per share if firm maintains constant annual 6% growth? 20 Dividends/(rate-growth) (1) 21 $4.00 10% 16% 16% $ 25.00 16% 10% $40.00 23 24 E2) 25 26 27 28 29 F) Compare- What valuation method do you believe most clearly resprects true value? 31