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:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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 ($M):
2015
2016E
2017E
2018E
2019E
BV
3800
Dividends
215
255
325
380
Earnings
390
575
385
659
Additional
BV
ROCE
Residual
Value
PVRE
PVCV.
Value of Equity
B. SHOW: Math for Calculating RE below:
C. Calculate the Value per Share:
Transcribed Image Text:1 3. Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the future is estimated to be 3% and the number of shares outstanding is 1,500 (M). Complete the chart shown below and answer parts B. A. Chart ($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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