c

(12%) The table provides the earnings and dividends forecast for company ABC. The required rate of return is 10%. Please answer the following questions. 2018 2019 2020 2021 2022 10.00 11.20 12.54 14.05 15.74 Earnings per share Dividends per share Book value per share Residual earnings per share 5.00 5.60 6.27 7.02 7.87 100.00 ? ? ? ? ? ? ? ? (a) (4%) Please calculate the book values per share in 2019, 2020, 2021, and 2022. (b) (4%) Please calculate the residual earnings per share in 2019, 2020, 2021, and 2022. (C) (4%) Please use residual earnings model to evaluate the price per share for company ABC in 2018 if the residual earnings is expected to a constant for each year since 2022