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 Le- Z-Boy, the king of reclining chairs. YEAR EARNINGS PER SHARE EPS 1990 $0.43 1991 $0.46 1992 $0.50 $0.63 $0.67 1995 $0.71 $0.83 1997 $0.92 1998 $1.24 1999 $1.56 2000 $1.61 1993 1994 1996 b) If Le-Z-Boy is trading in 2010 at its average P/B ratio over the last ten years of 15, what will the stock price be by 2010 based on the projected EPS calculated in itin)? c) Given the calculated stock price in itib) 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? iv) 2) What is a plausible way to estimate the growth rate of the book value of common equity