Question: Please fill in the three missing values. Will be sure to leave a thumbs up thank you Apply the Residual Earnings Model (Ch-5) to the

Please fill in the three missing values. Will be sure to leave a thumbs up thank you
Please fill in the three missing values. Will be sure to leave

Apply the Residual Earnings Model (Ch-5) to the data below to estimate the Stock Value Discount rate is >> 11.00% 1) 12Pts Assume Residual Earnings for Yeart and later remains constant Samount at the t=3 level you calculated ('90) 2) Spts What's now Stock S estimate il now starting at Yr 1-4. Resid. Eams remains at repeat constant annual > $ 2.00 3) 6pts What's new Stock $ estimate if now starting at Yr 4. Resid. Eams grows from t3 level at constant 3.00% Current Forecast Forecast Forecast Forecast Exam-2 due Oct-31 Actual t=1 t=2 t=3 EARINGS PER SHR $ 6.25$ 7.00 $ 7.50 $ 8.20 DIVIDEND $ 2.00 $ 2.20 $ 2.35 $ 2.55 BOOK VALUES 56.00 $ 60.80 $ 65.95$ 71.60 Calculate XRET ON EQUITY > ? ? ? 0.1100 $ Answ #2 Part 3 Annual CV growth after t=3 => 3.00% Stk Value incl growing CV> $ $ Answ #3

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