What is the market forecast of eps for three years ahead

Reference no: EM131490731

Question: Reverse Engineering with the Abnormal Earnings Growth Model (Medium) Analysts forecast forward earnings of$2.1 l per share and a forecast of $2.67 for two years ahead. The firm pays no dividends. The required return is 9 percent.

a. What is the long-term growth rate in abnormal earnings growth (AEG) implied by a market price of$105.69?

b. What is the market forecast of EPS for three years ahead?

Reference no: EM131490731

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