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4. An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2009-2013. She

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4. An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2009-2013. She asks you to value the 1380 million shares outstanding at the end of 2008 , when common shareholders' equity stood at $4310 million. Use a required return for equity of 10 percent in your calculations. a. Determine the value per share on the basis of residual earnings. b. Determine the value per share on the basis of Abnormal Earnings Growth. c. Compare above results through both the methods. 4. An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2009-2013. She asks you to value the 1380 million shares outstanding at the end of 2008 , when common shareholders' equity stood at $4310 million. Use a required return for equity of 10 percent in your calculations. a. Determine the value per share on the basis of residual earnings. b. Determine the value per share on the basis of Abnormal Earnings Growth. c. Compare above results through both the methods

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