28. The data for questions 28 through 36 is at the bottom of the Exhibit spreadsheet labelled Exhibit II. PACCAR is a manufacturer of trailer-truck cabs and demand for cabs is cyclical. PACCAR shares are currently priced at $101. Data for fiscal 2022, which ends on December 31, is forecast and you believe the 2012 to 2022 data reasonably reflects profitability over a business cycle [in reality it likely does not]. The Rate of Return required on PACCAR common is estimated at 8.50%. Using the data from 2012 through 2022, calculate normalized EPS for PACCAR using the average EPS. Round to 1 cent.

Normalized EPS:

29. Based on the normalized EPS, what is the PE Ratio? Round to 2 decimal places.

PE Ratio:

Exhibit II: PACCAR Data: Exhibit II: PACCAR Data