The question data is too large to be entered here and I can't figure out how to attach it. Here is the question from the book:

This case continues the financial statement analysis of Procter & Gamble Co. begun in Minicase 10.1 and developed further in Minicases 11.1, 12.1, and 13.1. This fifth installment focuses on forecasting and valuation, with further development in Minicase 16.1 in the next chapter.

Financial statements for Procter & Gamble are presented in Exhibit 10.15 in Chapter 10. If you worked Minicase 10.1, you will have reformulated the income statements and balance sheets to distinguish operating activities from financing activities. If you worked Minicases M12.1 and 13.1, you will have reached an understanding of P&Gs core profitability and the factors that drive that profitability. If not, you should do so now.

To start, calculate residual core operating income for the years 2008 to 2010 and note changes over time. Use a required equity return of 8 percent but convert it to an unlevered required return (for operations). In July 2010, just after the fiscal year ended, the 2,844 million outstanding shares of P&G were trading at $62. What is the trend in residual operating income? Does P&G appear to be a growth company? What drives the trend?

A. Develop forecasts of residual operating income for 2011 and growth thereafter based solely on information in the financial statements. Your analysis should include a no-growth forecast, along with a forecast that includes growth. Consider a weighted-average forecast that forecasts GDP growth in the long run. Do you think these forecasts are applicable to P&G? Carry out a sensitivity analysis to changes in inputs by developing a valuation grid.

B. Analysts were forecasting $3.93 in earnings per share for fiscal year 2011. How does the analyst forecast compare with yours?

C. Calculate the (traded) enterprise price-to-book ratio and reconcile it to the levered price-to-book ratio. Now calculate an intrinsic enterprise P/B using equation 15.2b in this chapter. Do you think the $62 price is reasonable?

Real World Connection

Minicases M10.1, M11.1, M12.1, M13.1, and M16.1 also cover Procter & Gamble.