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3. Calculate the Abnormal Earnings Growth (AEG) Model using the information shown below: Part A. Complete the Table. Please, note that DPS is show first

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3. Calculate the Abnormal Earnings Growth (AEG) Model using the information shown below: Part A. Complete the Table. Please, note that DPS is show first followed by EPS. Table ($) numbers are per share not total earnings or dividends. N 0 1 2 3 2011 2012 2013 2014 DPS .25 .25 .30 .35 EPS 3.00 3.60 4.10 5.50 DPS earnings EPS+ DPS earnings Normal Earnings AEG PV of AEG PV of Continuing Value Total Capitalized VPS The growth rate after 2014 is 2.5% and reinvestment rate and discount rate or capitalization rate is 8%. Complete the chart. CV uses the (1+ g) adjustment 3. Calculate the Abnormal Earnings Growth (AEG) Model using the information shown below: Part A. Complete the Table. Please, note that DPS is show first followed by EPS. Table ($) numbers are per share not total earnings or dividends. N 0 1 2 3 2011 2012 2013 2014 DPS .25 .25 .30 .35 EPS 3.00 3.60 4.10 5.50 DPS earnings EPS+ DPS earnings Normal Earnings AEG PV of AEG PV of Continuing Value Total Capitalized VPS The growth rate after 2014 is 2.5% and reinvestment rate and discount rate or capitalization rate is 8%. Complete the chart. CV uses the (1+ g) adjustment

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