1. Calculate the expected price for this company using a Dividends & Earnings model. The current dividend is given in the 2019 column. Future dividend growth is based on the rate of dividend growth over the last 3 years.

Future earnings growth is based on the average ROE and average Dividend Payout Ratio over the last 4 years. The P/E ratio in 3 years is based on the average P/E ratio over the last 4 years. Assume a required rate of return of 8%.

Information given in column 2019' is at time zero and also represents trailing twelve month (ttm). 2016 2017 2018 2019 Dividend $0.85 $0.90 $0.95 $1.00 EPS $2.125 $2.25 $2.375 ROE 18% 19% 18% P/E BVPS Sales/Share FCF/Share EBITDA 23,000 22,000 23,000 Debt 45,000 50,000 55,000 50,000 Cash 10,000 12,000 8,000 10,000 FCF 12,500 12,500 15,000 17,500