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i. Use information from the Weis Markets financial statements and the five-year review of operations to complete the table below that summarizes the inputs
i. Use information from the Weis Markets financial statements and the five-year review of operations to complete the table below that summarizes the inputs to the residual income valuation model. Note: different analysts will arrive at different model inputs. What is important is that you can justify your assumptions and the model inputs you choose. Residual income valuation model input ROE, - expected return on equity for year 1. Assume that Weis Market's three-year average ROE approximates expected future ROES. ROE, = Net Income,/B.. Dividend payout ratio. This ratio measures the dividends paid as a proportion of net income. Assume that Weis Market's three-year average dividend payout ratio approximates expected future payout ratios. Stock repurchase ratio. This ratio measures the stock repurchases, net of stock issuances, as a proportion of net income. Assume that Weis Market's three-year average stock repurchase ratio approximates future expectations. B-book value of equity at December 28, 2013 B-expected book value of equity at December 27, 2014 (1 - dividend payout ratio- B-B (BROE) stock repurchase ratio) B-expected book value of equity at December 26, 2015 B-expected book value of equity at December 31, 2016 Estimated model input
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