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5. Following is the forecast of Tintin Company (FY2021-2023)? EPS is Earnings per Share, DPS denoted Dividends per Share and BPS is Book value

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5. Following is the forecast of Tintin Company (FY2021-2023)? EPS is Earnings per Share, DPS denoted Dividends per Share and BPS is Book value per share. 2020A 2021E 2021E 2023E EPS 3.96 4.28 4.66 DPS 0.84 0.88 0.88 BPS 5.10 8.22 11.62 15.40 RE (10.0%) 3.45 3.46 3.50 Assume residual earnings estimate at forecast horizon will continue to grow at a constant rate into the future, calculate the implied growth rate, g, in the market price per share of $115.97 at the end of 2020. Assume the cost of capital to be 10%. a) 5.68% b) 6.5% c) 7.24% d) 8.1% Answer C.

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