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Question 1: Which of the following is the Cum-Dividend Earnings in 2023? Select one: A. $4.48 B. $7.48 C. $9.23 D. $6.86 Question 2: Which

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Question 1: Which of the following is the Cum-Dividend Earnings in 2023? Select one: A. $4.48 B. $7.48 C. $9.23 D. $6.86

Question 2: Which of the following is the correct Normal Earnings in 2023? Select one: A. $6.60 B. $5.01 C. $8.37 D. $7.72

Question 3: What is the Abnormal Earnings Growth for 2024? Select one: A. $0.25 B. $1.52 C. $1.00 D. $2.12

Question 4: If Abnormal Earnings are expected to grow at a rate of 3% per year after 2024, what would the continuing value be in 2024? Select one: A. $3.68 B. $1.50 C. $7.29 D. $5.83

Question 5: What is the intrinsic value per share in 2021? Select one: A. $28.32 B. $66.34 C. $45.71 D. $50.64

Use the following information to answer five questions related to Abnormal Earnings Model; The current year is 2021. Lewis Hamilton, an equity analyst for Barclays, produces the following earnings and dividend estimates for Mercedes Limited for years 20222024. The required rate of return is 10%. The firm has no debt. Actual Estimated 2021 2022 2023 2024 EPS 6.00 7.00 4.00 6.00 DPS 4.00 4.00 4.00 4.00 Use the following information to answer five questions related to Abnormal Earnings Model; The current year is 2021. Lewis Hamilton, an equity analyst for Barclays, produces the following earnings and dividend estimates for Mercedes Limited for years 20222024. The required rate of return is 10%. The firm has no debt. Actual Estimated 2021 2022 2023 2024 EPS 6.00 7.00 4.00 6.00 DPS 4.00 4.00 4.00 4.00

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