Question: Question 2 ( 4 marks) David Smith is evaluating the expected residual income for Scottish Power (London Stock Exchange: SPW). Smith determines that SPW has

Question 2 ( 4 marks)

David Smith is evaluating the expected residual income for Scottish Power (London Stock Exchange: SPW). Smith determines that SPW has a required rate of return of 8 percent. He obtains the following data from Thomson Financial as of 4 March 2002:

What is the forecast residual income for fiscal years ended March 2002 and March 2003?

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