1. Select real years to replace the proforma years indicated as Y0, Y 1. You can select your years starting from the period 2012 up and including to the year 2020

2013-2018

2. While the companys earnings have grown by 15% in Y1 this growth is not expected to last. For Year 2 and 3 choose a rate from one of the following rates: 11% or 12% or13% or 14%

11%

3. Choose a required equity rate from one of the following 6% or 7% or 8%

6%

4. From Year 4 onwards the companys earnings will grow at 1% below your chosen required equity rate.

5% after 4 years

5. Choose your companys dividend pay-out ratio by selecting either 20% or 30% or 40% of earnings

20%

6. In your question you need to provide the discount values do not ask your participant to determine these values using the PV formula is Excel.

your question using an abnormal earnings growth valuation

Prepare a complete solution showing all the calculations for your question