Problem 3-29 Here are earnings per share for two companies by quarter from the first quarter of three years ago through the second quarter of this year. Forecast earnings per share for the rest of this year and next year. Use exponential smoothing to forecast the third period of this year, and the time series decomposition method to forecast the last two quarters of this year and all four quarters of next year. (It is much easier to solve this problem on a computer spreadsheet so you can see what is happening.) 3 years ago QUARTER 1 II III IV 1 II MI IV 2 years ago 0.35 EARNINGS PER SHARE COMPANY A COMPANY B $ 1.66 $ 0.16 2.38 0.21 1.18 0.25 1.20 0.34 1.64 0.26 2.06 1.22 0.35 0.32 0.45 0.32 0.33 -0.25 (loss) 0.47 -0.91 (loss) 0.48 0.21 0.49 -1.63 (loss) 0.26 0.35 0.49 last year Il this year IV 1 II c. Using the decomposition of a time series method of forecasting, forecast earnings per share for the last two quarters of this year and all four quarters of next year. (Negative values should be indicated by a minus sign. Round your answers to 3 decimal places.) Company A Seasonal Factor Company B Seasonal Factor Forecast Forecast Quarter III this year IV 1 next year II IV Problem 3-29 Here are earnings per share for two companies by quarter from the first quarter of three years ago through the second quarter of this year. Forecast earnings per share for the rest of this year and next year. Use exponential smoothing to forecast the third period of this year, and the time series decomposition method to forecast the last two quarters of this year and all four quarters of next year. (It is much easier to solve this problem on a computer spreadsheet so you can see what is happening.) 3 years ago QUARTER 1 II III IV 1 II MI IV 2 years ago 0.35 EARNINGS PER SHARE COMPANY A COMPANY B $ 1.66 $ 0.16 2.38 0.21 1.18 0.25 1.20 0.34 1.64 0.26 2.06 1.22 0.35 0.32 0.45 0.32 0.33 -0.25 (loss) 0.47 -0.91 (loss) 0.48 0.21 0.49 -1.63 (loss) 0.26 0.35 0.49 last year Il this year IV 1 II c. Using the decomposition of a time series method of forecasting, forecast earnings per share for the last two quarters of this year and all four quarters of next year. (Negative values should be indicated by a minus sign. Round your answers to 3 decimal places.) Company A Seasonal Factor Company B Seasonal Factor Forecast Forecast Quarter III this year IV 1 next year II IV