Solve In Excel

Use the following information to answer al the parts of question 4

Assume the latest EPS was $2, going up by 18% each year for the following five years. Thereafter, the growth rate is constant at the annual growth rate of GDP of 4%. The discount rate is 10%.

Q4. A) The PV of EPS of the year five is

a. $1.20

b. $3.20

c. $4.20

d. $5.20

e. None of the above

B) The price as of the year five (P5) is $

C). The price as of today (P0) is $