a) Discuss the drivers of growth, and from the perspective of financial analysts, why do you agree (or disagree) that the residual earnings is a more accurate measure of firm's growth compared to other indicators such as profitability? (25 marks) b) The following provides BHP Group plc's earnings per share (EPS) and dividends per share (DPS) for the years 2022-2025. Suppose these numbers were given to you at the end of 2021, as forecasts, when the book value per share (BPS) was 4.40. EPS DPS 2022E 2023E 1.50 0.04 2024E 2025E 1.16 1.16 0.88 0.06 0.12 0.18 BPS 4.40 Required: Use a cost of capital of 11 percent for calculations below: i. Using the residual earnings valuation model, value the firm at the end of 2021. Would you call this a Case 1, 2 or 3 valuation? (15 ma ii. Based on your analysis, provide a recommendation to a potential investor if the share price of the company is traded at 10 per share. (5 m Rased on your analysis, forecast the target price at the end of 2025. (5 m a) Discuss the drivers of growth, and from the perspective of financial analysts, why do you agree (or disagree) that the residual earnings is a more accurate measure of firm's growth compared to other indicators such as profitability? (25 marks) b) The following provides BHP Group plc's earnings per share (EPS) and dividends per share (DPS) for the years 2022-2025. Suppose these numbers were given to you at the end of 2021, as forecasts, when the book value per share (BPS) was 4.40. EPS DPS 2022E 2023E 1.50 0.04 2024E 2025E 1.16 1.16 0.88 0.06 0.12 0.18 BPS 4.40 Required: Use a cost of capital of 11 percent for calculations below: i. Using the residual earnings valuation model, value the firm at the end of 2021. Would you call this a Case 1, 2 or 3 valuation? (15 ma ii. Based on your analysis, provide a recommendation to a potential investor if the share price of the company is traded at 10 per share. (5 m Rased on your analysis, forecast the target price at the end of 2025. (5 m