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Calculate the present value of residual earnings per share

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Reference no: EM133176031

Question - Given the following information:

 

Actual Year 0 €

Forecast Year 1 €

Forecast Year 2 €

Earnings per Share (EPS)    

0.45

0.45

Book Value per share (BPS)

2.90

Dividends per share (DPS)

0.30

0.32

Cost of Equity Capital

9.8%

Expected growth rate in residual earnings after Year 2

2.1%

Required - Calculate the Present Value of Residual Earnings per share, at the end of Year 2, for Year 3 onwards in Euro.

Reference no: EM133176031

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