Show your work. No credit will be given for final results without showing your work. Problem 1: Show your work. Draw the timeline with cash flows whenever appropriate. Apply Warren Buffett's analysis, as described in The New Buffettology, to the following data for La-Z-Boy, the king of reclining chairs. YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 EARNINGS PER SHARE (EPS) $0.43 $0.46 $0.50 $0.63 I $0.67 $0.71 $0.83 $0.92 $1.24 $1.56 $1.61 a) Assume that La-z-Boy's EPS will continue to grow over the next 10 years at the same rate as over the past ten years 1990-2000 (that is, using the growth rate calculated in (ia) above), what are the projected EPS in 2010 b) If La-Z-Boy is trading in 2010 at its average P/E ratio over the last ten years of 15, what will the stock price be by 2010 based on the projected EPS calculated in (1ia)? c) Given the calculated stock price in ciib) by 2010 and assuming you had spent $14 for a share of La-Z-Boy stock in 2000, what would be the annual compounding return on this ten-year investment