Please check the work below $(($Estimate firm's value by applying the OJ Residual income valuation model $($RIV$))$:

Known Financial Data

Opening Book Value: $$3,085\mathrm{.}20$

Book Value $2023$: $$3,493\mathrm{.}20$

Net Income $2023$: $$1,557\mathrm{.}30$

Dividends: $$1,175\mathrm{.}50$

Ratio Calculations:

Opening ROE $50\mathrm{.}48\%$

Dividend Payout $75\mathrm{.}48\%$

Market Data

Risk Free Rate $5\mathrm{.}42\%$

Market Risk Premium $5\mathrm{.}00\%$

Return on Market Portfolio $10\mathrm{.}42\%$

Beta $0\mathrm{.}93$

Calculated Cost of Capital $10\mathrm{.}07\%$

Book Value Estimation

Book Value $2024$ $$3,925$

Book Value $2025$ $$4,411$

Book Value $2026$ $$4,957$

Book Value $2027$ $$5,571$

Book Value $2028$ $$6,260$

Book Value $2029$ $$7,035$

Abnormal Earnings Estimation

Abnormal Earnings $2024$ $$1,411$

Abnormal Earnings $2025$ $$1,586$

Abnormal Earnings $2026$ $$1,782$

Abnormal Earnings $2027$ $$2,003$

Abnormal Earnings $2028$ $$2,251$

Abnormal Earnings $2029$ $$2,529$

Abnormal Earnings $2030$ $$2,842$

Net Present Value $$9,561$

Decision Analysis

PA $2023$ $$13,053\mathrm{.}71$

Shares Outstanding $360,500,000$

Estimated Value Per Share $$36\mathrm{.}21$

Trading Price $$122$