I attached the table for the questiosn above.

2. The following assumptions apply to the Anders Corp. stock: Anders Corp. expects to grow its sales, earnings, dividends and cash flows at a rate of 12% per year for the next two fiscal years (2021 through 2022). In 2023 and beyond, the company expects to grow at a sustainable growth rate based on the projections for 2022. a. Use the 2020 values of the items in the table below as the basis to project their 2021 and 2022 amounts. (10 points) Anders Corp. Actual 2020 2021 2022 Earnings per share Dividends per share Reinvested earnings per share Book value per share Return on equity (ROE) II Supporting Calculations Required: b. Calculate the sustainable growth rate using the 2022 projected values. Sustainable Growth Rate based on 2022 expected values (2 points) Supporting Calculation Required: c. Use the projected amounts for 2022 and the resulting sustainable growth rate as the basis to project their 2023 amounts. (5 points) Anders Corp. 2023 Earnings per share Dividends per share Reinvested earnings per share Book value per share Return on equity (ROE) Supporting Calculations Required: II d. Use the appropriate dividend discount model to compute the intrinsic value of the Anders Corp. stock at December 31, 2020 and indicate whether the stock is properly valued at its current price. Intrinsic Value of Anders Corp. stock (6 points) Supporting Calculation Required: II Is the Anders Corp. stock overvalued or undervalued at December 31, 2020? (2 points) Brief Explanation Required: The following information was compiled relative to two companies and their common stock at December 31, 2020: All values in millions except per share data and's Anders Corp. Benton Inc. Current stock price $15.00 $30.00 Beta 1.1 0.8 Dividend yield 1.80% 2.50% Fiscal Year 2020: Net sales $22.000 $180.000 Interest expense 0.400 12.000 Income before taxes 2.250 23.077 Income tax expense 1.200 8.077 Net income $1.350 $15.000 Earnings per share $0.675 $1.875 2.000 8.000 $1.620 $22.500 (9.000) Shares Operating cash flows Capital expenditures Net borrowings Total assets Total equity (0.320) (0.410) (5.630) 40.00 320.00 12.00 144.00 The risk-free rate is 3.6% and the expected return on the market is 9.6%. BRIDGEWATER STATE UNIVERSITY ACFI 490 Investments Take-Home Problem Set #2 Summer 2021 Page 7 of 14 1. Calculate the following amounts based on the values based on the 2020 results. (12 points) Anders Corp. Benton Inc. CAPM required rate of return (K) K = 10.2 K = 8.4 Dividend per share (D) $0.27 $0.75 Dividend payout ratio 0.4 0.4 Earnings retention rate (b) 0.60 0.60 Return on equity (ROE) 11.25% 10.42% Sustainable growth rate (9) 6.75% 6.252% Supporting Calculations Required: 2. The following assumptions apply to the Anders Corp. stock: Anders Corp. expects to grow its sales, earnings, dividends and cash flows at a rate of 12% per year for the next two fiscal years (2021 through 2022). In 2023 and beyond, the company expects to grow at a sustainable growth rate based on the projections for 2022. a. Use the 2020 values of the items in the table below as the basis to project their 2021 and 2022 amounts. (10 points) Anders Corp. Actual 2020 2021 2022 Earnings per share Dividends per share Reinvested earnings per share Book value per share Return on equity (ROE) II Supporting Calculations Required: b. Calculate the sustainable growth rate using the 2022 projected values. Sustainable Growth Rate based on 2022 expected values (2 points) Supporting Calculation Required: c. Use the projected amounts for 2022 and the resulting sustainable growth rate as the basis to project their 2023 amounts. (5 points) Anders Corp. 2023 Earnings per share Dividends per share Reinvested earnings per share Book value per share Return on equity (ROE) Supporting Calculations Required: II d. Use the appropriate dividend discount model to compute the intrinsic value of the Anders Corp. stock at December 31, 2020 and indicate whether the stock is properly valued at its current price. Intrinsic Value of Anders Corp. stock (6 points) Supporting Calculation Required: II Is the Anders Corp. stock overvalued or undervalued at December 31, 2020? (2 points) Brief Explanation Required: The following information was compiled relative to two companies and their common stock at December 31, 2020: All values in millions except per share data and's Anders Corp. Benton Inc. Current stock price $15.00 $30.00 Beta 1.1 0.8 Dividend yield 1.80% 2.50% Fiscal Year 2020: Net sales $22.000 $180.000 Interest expense 0.400 12.000 Income before taxes 2.250 23.077 Income tax expense 1.200 8.077 Net income $1.350 $15.000 Earnings per share $0.675 $1.875 2.000 8.000 $1.620 $22.500 (9.000) Shares Operating cash flows Capital expenditures Net borrowings Total assets Total equity (0.320) (0.410) (5.630) 40.00 320.00 12.00 144.00 The risk-free rate is 3.6% and the expected return on the market is 9.6%. BRIDGEWATER STATE UNIVERSITY ACFI 490 Investments Take-Home Problem Set #2 Summer 2021 Page 7 of 14 1. Calculate the following amounts based on the values based on the 2020 results. (12 points) Anders Corp. Benton Inc. CAPM required rate of return (K) K = 10.2 K = 8.4 Dividend per share (D) $0.27 $0.75 Dividend payout ratio 0.4 0.4 Earnings retention rate (b) 0.60 0.60 Return on equity (ROE) 11.25% 10.42% Sustainable growth rate (9) 6.75% 6.252% Supporting Calculations Required