Problem $2$: Abnormal Earnings Growth $($AEG$)$ model. Assume that the required return is $10\%$ and the

growth rate after $2026$ is $2\mathrm{.}5\%.$ Take numbers $3$ places and align answer under time period $0$ which is

Model: $V_0=\frac{1}{r}(EP{S}_1+PVAE{G}_2+PVAE{G}_3+PV(AE{G}_4\frac{1+g}{r}-g))$

The table is dollar per share. Calculate VPS using the table.

Dividend Earnings

Cumulative Earnings

Normal Earnings $(1\mathrm{.}10)$

AEG

PV of AEG

PV of $CV$

Subtotal

VPS capitalized