how was the 36.70 number calculated in the P0 for P3 value?

+ 31 A Read aloud TV Draw Income Pro Forma Income Statements 12/31/19 and PF 12/31/20 to 12/31/22 (Values in Millions of Dollars) 2019CS 2020PF 2021PF 2022PF 2019 Sales Cost of Goods Sold Depreciation EBIT Interest Income Before Taxes Taxes, 35% Net Income $2,500 (5750) ($250) $1,500 {$150) $1,350 (5473) $878 100.0% 30.0% 10.0X 60.0% 6.0% 54.0% 18.9% 35.1% $2,875 (5863) $288) $1.725 ($173) $1,553 $543) $1.009 $3,306 ($992) ($331) $1,984 ($198) $1,785 ($625) $1. 160 $3,802 ($1,141) 5380) $2,281 ($228) $2,053 (5719) $1.235 ($219) $658 25.0%" 75.0% ($252) SZSZ (S290) $870 ($334) $1,001 Dividends Retained Earnings Dividends Per Share (OPS) Dividends and RE are calculated as a percentage of Net Income. $2.19 $2.52 $2.90 $3.34 Earnings Model Projections and Assumptions: -Pro forma sales growth is 15% per year Common Size values are calculated as a percentage of sales, unless noted otherwise -DPS is calculated as Dividends / 100 Million Shares Outstanding - Dividends are expected to grow at a constant rate of 20% after pf2022 -The required return is 10% -The value of this company is calculated as PO = 01/(1+r) + D2/(1+r)^2 +03/(1+r)^3 +P3/(1+r)^3 Where P3 - 03/r-8 Using the projections from XYZ Corporation's Earnings Model, PO = $2.52/(1.0.10) - $2.90/(1+0.10)^2 + $3.34/(1.10)^3 + $36.70/(1.10) 3 Where P3 = $3.34/0.20 -0.10 PO = $2.29 $2.40+$2.51 +$27.57 PO = $34.77