Canadian Soap Ltd. reported the following year-end earnings per share:

Year	EPS
2020	$3.84
2019	3.20
2018	3.15
2017	2.59
2016	2.44
2015	2.17
2014	2.62

Your required rate of return on this type of investment is 14.00%.

Requirement 1

If earnings per share are expected to continue to grow at their current rate, and if dividends are typically 65% of earnings, what is the expected per share price?

Growth rate (g): %

Share Price (P₀): $

Requirement 2

The price per Canadian Soap share on September 30, 2020 was $35.50. If you purchase the share at that price, what is your expected rate of return? Should you purchase the Canadian Soap shares? Why or why not?

Expected rate of return (r)