Residual earnings analysis

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Reference no: EM132245119

Today is January 31, 2018. The book value per share for equity is currently $13.21.

Earnings per share:

Jan 31, 2019 $5.35

Jan 31,2020 $4.11

Dividend per share:

Jan 31,2019 $2.11

Jan 31, 202 $1.51

Growth rate after 2020 3%

Required return 10%

Required:

What is the equity value of the firm (in dollars per share) using Residual Earnings Analysis?

Reference no: EM132245119

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