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 Buffettologs, 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 $0.67 $0.71 $0.83 $0.92 $1.24 $1.56 $1.61 a) What is a plausible way to estimate the growth rate of the book value of common equity? b) Briefly explain the following concepts: Durable competitive advantage: Protective moat: Circle of competence: Margin of safety:

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Durable upper hand Solid upper hand is a supportable factor that gives a business an edge over its r... View the full answer