The financial data can be found on the SEC website. Just google Boeing 10k report.

Please use Boeing the companys 10-K as of the end of 2016 fiscal year to answer the questions below. Please answer the questions in Part A, using the financial accounting knowledge we have learned and the introduction on valuation model in Part B below (at the bottom of this document). Explain your answers for the questions below. Part A.Application of the model demonstrated in Part B below. (please refer to Part B for any terminology and calculation formulas which are not provided in the body of the questions)i.Use information from the company financial statements and the five-year review of operations to complete the table below that summarizes the inputs to the residual income valuation model. Note: different analysis will arrive at different model inputs. What is important is that you can justify your assumptions and the model inputs you chooseResidual income valuation model inputEstimated model inputROEt expected return on equity. Assume that the company three-year average ROE approximates expected future ROEs. (i.e., Net income/Bt-1)Dividend payout ratio. This ratio measures the dividends paid as a proportion of net income. Assume that the company's three-year average dividend payout ratio approximates expected future payout ratiosStock repurchase ratio (repurchases, net of new stock issuances). This ratio measures the stock repurchases, net of stock issuances, as a proportion of net income. Assume that the company's three-year average stock repurchases ratio approximate future expectations. B0 book value of equity at the end of fiscal year 2016B1Expected book value of equity at the end of fiscal year 2017B2 Expected book value of equity at the end of fiscal year 2018B3Expected book value of equity at the end of fiscal year 2019 ii.Assume that the companys cost of equity capital is 8% and that the companys expected terminal-period growth is 3%. Use the model inputs you estimated above, to compute the intrinsic value (i.e., V0) at the end of fiscal year 2016.iii.What is the intrinsic value per share of the company at the end of fiscal year 2016?iv.Use an online investment site (such as Google Finance or Yahoo! Finance) to find the stock price of the company at the end of fiscal year 2016. Compare that stock price to your estimate of the company intrinsic value per share, from Part III, above. What might account for any difference? if you are very confident in your estimate of intrinsic value., what investment strategy might you undertake with respect to the company?Part BIntroduction on valuation model A more sophisticated way to value a company is to forecast its future results for a number of periods and then make a simplifying assumption about results it will achieve over the rest of its life. For example, a security analyst could forecast specific figures for the next three years based on expectations about the economy and the companys competitive strategy. This period is known as the forecast horizon and can be as long or as short as the analyst feels comfortable forecasting. The period beyond the forecast horizon is called the terminal value. The simplifying assumptions used to calculate is usually rely on general trends expected to apply over the long-run; for example, that growth rates will move to towards the general long-run growth rates for the sector of the company in which the firm operates and profits will be affected by the forces of competition and move towards their normal, or equilibrium, levels. The residual income valuation model is a very powerful model that captures key economic variables in an intuitively appealing fashion. The module is algebraically equivalent to valuating a company by determining the present value of the future dividends to common shareholders. However, it allows analysts to focus on the generation of shareholder value rather than its distribution. The model demonstrates that the value of the equity of a firm is equal to its net book value plus the present value of its future residual income. Residual income is an economic concept. It represents the profits a company earns above and beyond those expected by shareholders. Expected earnings are earnings that exactly compensate shareholders for taking on risky investments. In simple terms, when shareholders make an investment, they demand a return at least equal to the amount of their investment times the cost of equity capital (i.e., the amount they expect to earn on alternative investments of equivalent risk). If a firms earnings are exactly equal to the value of beginning of-the period owners equity times the cost of equity, then the firm has earned no residual income. When earnings are greater than (less than) beginning owners equity times the cost of equity, the firm has positive (negative) residual income. A firms shareholders provide capital to the firms managers. The managers objective is to use that capital to earn long-run returns that exceed the cost of that capital. In other words, managers are tasked with generating residual income. When managers accomplish this, they are said to be creating shareholder value. Algebraically, the residual income valuation model is V0=B0+B0 (ROE1-re)(1+re )1+B1 (ROE2-re)(1+re )2+B2 (ROE3-re)(1+re )3+B3 (ROE4-re)(re-g)(1+re )3Where:V0 is the intrinsic (estimated) value of the equity of the firm at time 0.Bt is the book value (i.e., owners equity) of the firm at time t.ROEt (i.e., Net income/Bt-1) is return on common equity in period tre is the firms cost of equity capital.g is the appropriate long-run growth rate for residual income.The first term on the right-hand side of the model is B0, the owners equity of the firm at the date of the valuation. Investors will pay only book value for a company that is not expected to earn a return over its cost of equity. The remaining terms on the right-hand side are the analysts estimate of the value that managers are expected to create over the rest of the life of the firm. These terms can be grouped into two categories: the present value of the residual income generated over the forecast horizon and the terminal value. In the version of the model above, there are there periods in the forecast horizon. The numerator in each term is the residual income generated in periods 1, 2 and 3 respectively. The firms book value grows from one period to the next by that periods earnings net of dividends paid and stock repurchased. Algebraically, this is Bt+1=Bt+(Bt*ROEt+1)(1- dividend payout ratio-stock repurchase ratio). The denominator is the present value factor that brings the future residual income back to a present value at time 0. The last term in the model is the terminal value and it has three parts. The numerator is the amount of residual income expected to be generated in period 4. And serves as the base from which all future residual income follows. The denominator takes that residual income and assumes that it grows in perpetuity as a constant rate, g, by dividing the numerator by (re-g). Because that will generate the present value of an annuity at the beginning of period 4 (end of period 3), the amount needs to be discounted back to time 0 by further dividing the numerator by the present value factor for three periods (i.e., (1+re)3 )