2. Calculate the estimated value per share using the Change in Residual Earnings Method: Complete...

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2. Calculate the estimated value per share using the Change in Residual Earnings Method: Complete the chart: N 2010 o 2011 $3.00 .25 1 2012 $3.60 .25 2 2013 $4.10 .30 3 2014 $5.50 .35 EPS DPS Difference BPS $15.00 ROCE Residual Earnings Change in RE PV Change RE PV of CV Total Capitalized VPS Show RE Calculation: below RE 2011: RE 2012: RE 2013: RE 2014: The required return is 8% and the growth rate is 2.5% after 2014. CV uses the (1+g) adjustment A. Complete the Table: B. Calculate Value per Share using the change in residual earnings model: 2. Calculate the estimated value per share using the Change in Residual Earnings Method: Complete the chart: N 2010 o 2011 $3.00 .25 1 2012 $3.60 .25 2 2013 $4.10 .30 3 2014 $5.50 .35 EPS DPS Difference BPS $15.00 ROCE Residual Earnings Change in RE PV Change RE PV of CV Total Capitalized VPS Show RE Calculation: below RE 2011: RE 2012: RE 2013: RE 2014: The required return is 8% and the growth rate is 2.5% after 2014. CV uses the (1+g) adjustment A. Complete the Table: B. Calculate Value per Share using the change in residual earnings model

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