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Please answer the three questions. Will be sure to leave a thumbs up thanks Apply the Residual Earnings Model (Ch-5) to the data below to
Please answer the three questions. Will be sure to leave a thumbs up thanks
Apply the Residual Earnings Model (Ch-5) to the data below to estimate the Stock Value Discount rate is >> 11.00% 1) 12Pts Assume Residual Earings for Yeart and later remains constant Samount at the t3 level you cakulated (9-0). 2) 6pts What's new Stock S estimate if now starting at Yrt-4, Resid. Eams remains at repeat constant annual > $ 2.00 3) pts What's new Stock $ estimate if now starting at Yr 4. Resid. Eams grows from t3 $ level at constant 3.00% Current Forecast Forecast Forecast Forecast Exam-2 due Oct-31 Actual t=1 t=2 t=3 EARINGS PER SHR $ 6.25 $ 7.00 $ 7.50 S 8.20 DIVIDEND $ 2.00 $ 2.20 $ 2.35$ 2.55 BOOK VALUE $ 56.00 $ 60.80 $ 65.95 S 71.60 Calculate %RET ON EQUITY > ? ? ? 0.1100 $ Answ #2 Part 3 Annual CV growth after t=3 => 3.00% Stk Value incl growing CV> $ Answ #3 Apply the Residual Earnings Model (Ch-5) to the data below to estimate the Stock Value Discount rate is >> 11.00% 1) 12Pts Assume Residual Earings for Yeart and later remains constant Samount at the t3 level you cakulated (9-0). 2) 6pts What's new Stock S estimate if now starting at Yrt-4, Resid. Eams remains at repeat constant annual > $ 2.00 3) pts What's new Stock $ estimate if now starting at Yr 4. Resid. Eams grows from t3 $ level at constant 3.00% Current Forecast Forecast Forecast Forecast Exam-2 due Oct-31 Actual t=1 t=2 t=3 EARINGS PER SHR $ 6.25 $ 7.00 $ 7.50 S 8.20 DIVIDEND $ 2.00 $ 2.20 $ 2.35$ 2.55 BOOK VALUE $ 56.00 $ 60.80 $ 65.95 S 71.60 Calculate %RET ON EQUITY > ? ? ? 0.1100 $ Answ #2 Part 3 Annual CV growth after t=3 => 3.00% Stk Value incl growing CV> $ Answ #3 Step by Step Solution
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