C. Reverse Engineering/Multiples Interpretation The following were the analyst consensus forecasts for EPS and DPS for ARB over the next three years at the valuation date: [ Assume ARB's cost of equity was 9.40%. The company had 81,855,789.00 shares outstanding. Its share price was $31.23 on the valuation date. C1. Reverse engineering (Written report) Further assume the company will be in steady state after three years. Using the residual income model, what terminal growth rate (g) do the analyst forecasts and market price imply? How reasonable is this implied terminal growth rate? Show all workings Page limit for C1 : no more than 1 page C2. P/E Ratio Interpretation (Written report) On the valuation date, what is ARB's forward P/E multiple? What does this P/E multiple tell you about the market's expectations about ARB's future residual income? Show all workings Page limit for C2: no more than 1 page