Suggest your comments. (9 points) Question 2: In December 2x18, shares of DH corp. were traded at $20.50 each (per share). In its annual report of 2x18, DH Corp. had reported net book value of equity of $3,735 million with 2,060 million shares outstanding. Financial Analysts were forecasting EPS (earnings per share) of $1.47 for fiscal year 2x19 and $1.77 for 2x20. DH pays no dividends. Given these financial analysts' forecasts, what was the market's forecast of the residual earnings growth rate after 2x 207 Assume the cost of equity was 10% per annum throughout this forecast horizon and the firm valuation model is as follows: P BY P1 - BVX+ (1+r) + (1+r)*(1 + r) x (r-9) REXIRE,X > REX 70 where BV - Net book value, RE = Residual income. Question 3: Following is the Cash Conservation Equation, which always holds as an accounting equality C-I-d + F where C - Net cash flow from operation inflow), 1 - Net cash flow for investment (outflow), C-I-Free Cash Flow, d = Net payout to equity holders(cash dividends to common shareholders + acquisition of treasury stock - new share issues). F = Net cash flow to financial asset issuers and investors in debt securities. Requirement A: Confirm if the Cash Conservation Equation holds for financial data below for the fiscal year of 2x10. (12 points) Question 3: Following is the Cash Conservation Equation, which always holds as an accounting equality. C- I = d + F where C = Net cash flow from operation inflow), I - Net cash flow for investment (outflow), C-1 - Free Cash Flow, d. Net payout to equity holders(cash dividends to common shareholders + acquisition of treasury stock - new share issues). Net cash flow to financial asset issuers and investors in debt securities. F Requirement A: Confirm if the Cash Conservation Equation holds for financial data below for the fiscal year of 2x10. (12 points)