EXHIBIT A Assumptions for the Equity Index of Emerge Country Annual dividend per share in 2008 450 CU Forecasted earnings per share in 2009 750 CL Forecasted annual growth in IFP 1 5 % Expected real growth rate of dividends to perpetuity 5.5% Required real discount rate to perpetuity 7 5% * CUS currency unit of Emerge Country A . Based on the information in Exhibit A calculate the equity index price level of Emerge Country implied by the Gordon growth model , as of 31 December 2008 Villeneuve is familiar with the Gordon growth model but not the H -model