An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2011-2015. She asks you to value the 1490 million shares outstanding at the end of 2010, when common shareholders' equity stood at $5410 million. Use a required return for equity of 8 percent in your calculations. 2011 Earnings 377.0 Dividends 104.0 2012 559.0 149.0 2013 588.0 338.0 2014 618.0 356.0 2015 649.4 74.4 A) Forecast book value and residual earnings for each of the years, 2011-2015. B). Forecast growth rates for book value and growth in residual earnings for each of the years, 2012-2015. Calculate per share value of the equity from this pro forma. Year 2010 2011 2012 2013 2014 2015 Earnings 377.0 559.0 588.0 618.0 649.4 Dividends 104.0 149.0 338.0 356.0 374.4 Book Value Residual Earnings (RE) 5410 Growth rate in RE (%) Growth rate for book value (%) Present Value of RE Continuing Value (CV) Present value of CV