7) How does your valuation compare to the prevailing market price at the time? Explain RESIDUAL EARNINGS VALUATION Cost of Capital ANZ GROUP 0.05 FORECAST YEAR 2015 2016 2017 2018 5720000000.00 6421000000.00 6416000000.00 4,564,000,000.00 4,210,000,000.00 4,563,000,000.00 57353000000.00 58509000000.00 60720000000.00 62573000000.00 Earnings Dividend Book Value 9.97% 10.97% 10.57% ROCE - (Current EPS/previous BPS) Residual Earnings [(ROCE - 5% *BV previous year] Discount rate Present value of RE Total Present value of RE to 2018 Value of equity Shares outstanding at 01/10/2016 Value per share 2852350000 1.05 2,716,523,810 3495550000 1.1025 3,170,566,893 3380000000 1.157625 2,919,771,083 8,806,861,786 66159861785.98 2,927,476,660 22.60 Market share price as at the beginning of 2016 27.52