2.11. EPS2013 = (0.99)(1.185)5(1.09)5 = $3.6 Dividend2014 = (0.51)(3.6)(1.04) = $1.9 Share value2013 = 1.9/(0.10 0.04)

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2.11. EPS2013 = (0.99)(1.185)5(1.09)5 = $3.6 Dividend2014 = (0.51)(3.6)(1.04) = $1.9 Share value2013 = 1.9/(0.10 − 0.04) = $31.7 Share value2002 = $31.7/(1.12)10 = $10.2.

363 364 Appendix C Answers to Selected End-of-Chapter Problems CHAPTER 3

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