Need to calculate the BPS for 2014 and 2015 without share repurchases and thr value of the share in 2014/ end of 2013.

Benchmark Metrics Inc BMI), an all-equity financed firm. reported EPS of $5.48 in 2013. Despite the economic downturn, BMI is confident regarding its current investment opportunities. But due to the financial crisis, BMI does not wish to fund these investments externally. The Board has therefore decided to suspend its stock repurchase plan and cut its dividend to 50.96 per share (vs. almost $2 per share in 2012), and retain these funds instead. The firm has just paid the 2013 dividend, ani BMI plans to keep its dividend at $0.96 per share in 2014 as well. In subsequent years, it expects its growth opportunities to slow, and it will still be able to fund its growth internally with a target 43% dividend payout ratio, and reinitiating its stock repurchase plan for a total payout rate of 64% (All dividends and repurchases occur at the end of each year) Suppose BMI's existing operations will continue to generate the current level of earnings per share in the future. Assume further that the return on new investment is 15%, and that reinvestments will account for a future earnings growth (if any). Finally, assume BMI's equity cost of capital is 10% a. Estimate BMIS EPS in 2014 and 2015 (before any share repurchases). b. What is the value of a share of BMI at the start of 2014 (end of 2013) Hint Make sure to round all intermediate calculations to at least four decimal places a. Estimate BM's EPS in 2014 and 2015 (before any share repurchases) BM's EPS in 2014 is (Round to the nearest cent)