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Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the future is estimated to be 3% and the number of
Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the future is estimated to be 3% and the number of shares outstanding is 1,500 (M). Complete the chart shown below and answer parts B. A. Chart ($M): 2015 2016 2017E 2018 2019E BV 3800 Dividends 215 255 325 380 Earnings 390 575 385 659 Additional BV ROCE Residual Value PVRE PVCV Value of Equity B. SHOW: Math for Calculating RE below: C. Calculate the value per Share: Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the future is estimated to be 3% and the number of shares outstanding is 1,500 (M). Complete the chart shown below and answer parts B. A. Chart ($M): 2015 2016 2017E 2018 2019E BV 3800 Dividends 215 255 325 380 Earnings 390 575 385 659 Additional BV ROCE Residual Value PVRE PVCV Value of Equity B. SHOW: Math for Calculating RE below: C. Calculate the value per Share
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