Calculate the present value of residual earnings per share

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Reference no: EM133160524

Question - Given the following information:

 

Actual

Year 0

Forecast

Year 1

Forecast

Year 2

Earnings per Share (EPS)    


0.35

0.45

Book Value per share (BPS)

2.50



Dividends per share (DPS)


0.30

0.32

Cost of Equity Capital

9.2%



Expected growth rate in residual earnings after Year 2

3.7%



Calculate the Present Value of Residual Earnings per share, at the start of Year 1, for Year 3 onwards in Euro (to 2 decimal places - do not enter € sign).

Reference no: EM133160524

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