Question 4. Suppose the abnormal earnings model of Macquarie Inc. is as follows: 2018 2021F 5,954 Closing Equity ($m) Net Profit 2019F 6,956 933 2020F 7,967 1,123 9,083 1,123 847 Assuming cost of equity of Macquarie Inc. is 7%, and the long-term growth rate of abnormal earnings is 3.5%. 1. Show the workings of calculation of present value of abnormal earnings for the forecast horizon from 2019 to 2021. 2. Show the workings of calculation of terminal value of abnormal earnings beyond the forecast horizon. 3. What is the total equity value for Macquarie Inc. using the discounted abnormal earnings model? What is the estimated equity value per share? 4. What is the proportion of terminal value to total estimated value of equity? Question 4. Suppose the abnormal earnings model of Macquarie Inc. is as follows: 2018 2021F 5,954 Closing Equity ($m) Net Profit 2019F 6,956 933 2020F 7,967 1,123 9,083 1,123 847 Assuming cost of equity of Macquarie Inc. is 7%, and the long-term growth rate of abnormal earnings is 3.5%. 1. Show the workings of calculation of present value of abnormal earnings for the forecast horizon from 2019 to 2021. 2. Show the workings of calculation of terminal value of abnormal earnings beyond the forecast horizon. 3. What is the total equity value for Macquarie Inc. using the discounted abnormal earnings model? What is the estimated equity value per share? 4. What is the proportion of terminal value to total estimated value of equity