Lambton Inc. is traded at $50 per share with a book value of $15 per share in September 2020. The company is expected to report an earnings per share of $3, and pay dividends of $0.48 per share for the fiscal year ending June 2021, which are expected to increase by 25% and 10%, respectively, in 2022. The required rate of return is 10%.

NOTE: Round your answers to two decimal places. Do not use a symbol (such as $), space or , in your answers. (i.e., 40000 acceptable; $40,000 or 40 000 not acceptable)

You are required to calculate:

a. Total of present value of residual earnings

b. Continuing value assuming that the abnormal earnings will grow at the GDP growth rate of 4% per annum after 2022

c. Value per share

d. Given your valuation, is the market forecasting a higher or lower long-term growth rate that the GDP growth rate of 4% per annum?

e. As an analyst, what would your recommendation be to the clients Buy, Sell, or Hold Lambton Inc.s shares?