3. Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the future is estimated to be 3% and the number of shares outstanding is 1,500 (M). Complete the chart shown below and answer parts B. A. Chart ($M): 2015 2016E 2017E 2018E 2019E BV 3800 Dividends 215 255 325 380 Earnings 390 575 385 659 Additional BV ROCE Residual Value PVRE PVCV Value of Equity B. SHOW: Math for Calculating RE below: C. Calculate the Value per Share:

3. Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the future is estimated to be 3% and the number of shares outstanding is 1,500 (M). Complete the chart shown below and answer parts B. A. Chart ($M): 2015 2016E 2017E 2018E 2019E BV 3800 Dividends 215 255 325 380 Earnings 390 575 385 659 Additional BV ROCE Residual Value PVRE PVCV Value of Equity B. SHOW: Math for Calculating RE below: C. Calculate the Value per Share:

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Description: 13. Residual Earnings Evaluation:The required return is 9%. The growth rate after 2019 into the future isestimated to be 3% and the number of shares outstanding is 1,500 (M).Complete the chart shown below and answer parts B.A. Chart ($M):20152016E20

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...

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