Name: Show your work. No credit will be given for final results without showing your work. 1. Show your work. Draw the timeline with cash flows whenever appropriate. Apply Warren Buffett's analysis, as described in The New Buffette, to the following data for La- Z-Boy, the king of reclining chairs. YRAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 BARNINGS PER SHARE CEPS $0.43 $0.46 $0.50 $0.63 $0.67 $0.71 $0.83 $0.92 $1.24 $1.56 $1.61 a) What is the annual compounding rate (growth rate) of EPS from 1990 to 2000 (ten-year period)? b) Are the earnings of the company strong and do they show an upward trend? i) Daring 1991-2000, La-Z-Boy paid out in dividends a total of $2.63 per share. a) What are the retained earnings during the same period? b) What is the return on retained earnings from 1991 to 2000? ) 2) Assume that La-z-Boy's EPS will continue to grow over the next 10 years at the same rate as over the past ten years 1990-2000 (that is, using the growth rate calculated in (a) above), what are the projected EPS in 2010