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Insert Table Chart Text Shape Media Comment Name: Actual 2020 5,000,000 Forecast Forecast 2021 2022 Net Income Shares o/s 1,000,000 EPS Growth Required Return P/E

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Insert Table Chart Text Shape Media Comment Name: Actual 2020 5,000,000 Forecast Forecast 2021 2022 Net Income Shares o/s 1,000,000 EPS Growth Required Return P/E Valuation: It's your first day at Capital Investment Partners and your boss asks you the following questions: 1) Calculate 2020 earnings per share (eps) show calculation 2) In Net Income will grow by 10% in 2021 and then another 10% in 2022 calculate the expected net income for the two years 3) If the company is expected to trade at a P/E of 20 show what the company should be valued at in 2022 4) With our required return of 15% per year what would be the value of the entire company that we would be willing to pay today? MacBook Pro vit Insert EF Table TE Text Shape Chart Media Comment 4) With our required return of 15% per year what would be the value of the entire company that we would be willing to pay today? 5) what would be the value per share that we would be willing to pay today? 6) If the company bought back 200,000 shares, what would be the value we would be willing to pay today? Income Statement et net

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