The following provides TYTs earnings per share (EPS) and dividends per share (DPS) for the years 2020 2023. Suppose these numbers were given to you at the end of 2019, as forecasts, when the book value per share (BPS) was 7.90.
	2020E	2021E	2022E	2023E
EPS	2.15	2.38	2.605	2.86
DPS	0.05	0.05	0.05	0.05
Use a required return of 10 percent for calculations below:
i. Using the residual earnings valuation model, value the firm at the end of 2019. Would you call this a Case 1, 2 or 3 valuation?
ii. Based on your analysis, provide a recommendation to a potential investor if the share price of the company is traded at 25 per share.
iii. Based on your analysis, forecast the target price at the end of 2023.