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Financial Statement Financial Statement M 5.3 Forward P/E= price per share/forecast of next year’s EPS=$63.2/$4.54=13.92 BPS=$5,224/420.9=$12.41 P/B=$63.2/$12.41=5.09 C. Value=Book value of 2009+continuing value= $17.06+75.78=$92.84 D. Re=0.05+0.6*0.05=8% When required rate of return is 10%, 1. Price = $63.2, BPS = $12.41, Residual Earning = Actual earnings – Expected Earnings Based on previous calculation: RE for 2008.