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Please use the following information for the next 9 questions. An analyst presents James with the following proforma (in millions of dollars) that gives her
Please use the following information for the next 9 questions. An analyst presents James with the following proforma (in millions of dollars) that gives her forecast of earnings and dividends for 2020-2022. The required equity return is 15%. The book value of the common equity at the end of 2019 was $2,000 million, and the number of shares outstanding was 200 million shares. 2020E 2021E 2022E Earnings Dividends 500.000 340.000 540.000 367.200 583.200 396.576 Supposing that the residual earnings will grow at a constant rate of 8% after 2021 (ie, starting from 2022) into the foreseeable future, what is the continuing value at the end of 2021 in millions of dollars)? $3,332.5714 $3,275.4286 $4,381.7143 $3.857.1429 Question 14 (4 points) Saved What is the cum dividend earnings in 2021 (in millions of dollars)? $540.00 $567.20 $591.00 $595.08 Question 15 (4 points) What is the abnormal earnings growth (in dollars) in 2022 in millions of dollars)? $17.28 $18.66 $16.00 $16.57 Please use the following information for the next 9 questions. An analyst presents James with the following proforma (in millions of dollars) that gives her forecast of earnings and dividends for 2020-2022. The required equity return is 15%. The book value of the common equity at the end of 2019 was $2,000 million, and the number of shares outstanding was 200 million shares. 2020E 2021E 2022E Earnings Dividends 500.000 340.000 540.000 367.200 583.200 396.576 Supposing that the residual earnings will grow at a constant rate of 8% after 2021 (ie, starting from 2022) into the foreseeable future, what is the continuing value at the end of 2021 in millions of dollars)? $3,332.5714 $3,275.4286 $4,381.7143 $3.857.1429 Question 14 (4 points) Saved What is the cum dividend earnings in 2021 (in millions of dollars)? $540.00 $567.20 $591.00 $595.08 Question 15 (4 points) What is the abnormal earnings growth (in dollars) in 2022 in millions of dollars)? $17.28 $18.66 $16.00 $16.57
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