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Microsoft 6/30/2021 6/30/20206/30/2019 Estimate EPS 11.69 11.89 8.3 Book Value per Share 28,66 19.60 21.62 Dividend Per Share 2.82 1.97 Beta 1123 Rom 0.08 RE

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Microsoft 6/30/2021 6/30/20206/30/2019 Estimate EPS 11.69 11.89 8.3 Book Value per Share 28,66 19.60 21.62 Dividend Per Share 2.82 1.97 Beta 1123 Rom 0.08 RE 0.03 Actual Price 203.51 a e Do these numbers in 2020 and 2021 follow clean surplus relations Vecify (2 points) b. What would be the estimate of other comprehensive income in year 2020 and 2021 (2 points) What is the cost of capital? (1 point) d. Given the data what is the earnings (EPS) that you will espect for 2021? (1 point) Given the analysts estimate of EPS, what is the estimate of abnormal earings? (1 point) f. What is the estimate of comprehensive Residual Income Estimate for 2021? (2 points) g Microsoft expects a long term growth of 4.7%. Based on this growth rate what will be the Residual Income valuation of Microsoft h. What will be the Abnormal Earrings growth based valuation of Microsoft(2 points) Given the data what would be the valuation based on dividend discount (1 point) Given the actual price, what is your conclusion of which method worked better and why (3 points) 1 Microsoft 6/30/2021 6/30/20206/30/2019 Estimate EPS 11.69 11.89 8.3 Book Value per Share 28,66 19.60 21.62 Dividend Per Share 2.82 1.97 Beta 1123 Rom 0.08 RE 0.03 Actual Price 203.51 a e Do these numbers in 2020 and 2021 follow clean surplus relations Vecify (2 points) b. What would be the estimate of other comprehensive income in year 2020 and 2021 (2 points) What is the cost of capital? (1 point) d. Given the data what is the earnings (EPS) that you will espect for 2021? (1 point) Given the analysts estimate of EPS, what is the estimate of abnormal earings? (1 point) f. What is the estimate of comprehensive Residual Income Estimate for 2021? (2 points) g Microsoft expects a long term growth of 4.7%. Based on this growth rate what will be the Residual Income valuation of Microsoft h. What will be the Abnormal Earrings growth based valuation of Microsoft(2 points) Given the data what would be the valuation based on dividend discount (1 point) Given the actual price, what is your conclusion of which method worked better and why (3 points) 1

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