Per Share Residual lncome Forecasts.
David Smith is evaluating the expected residual income for Scottish Power (London Stock Exchange: SPW). Smith determines that SPW has a required rate of return of 8 percent. He obtains the following data from Thomson Financial as of 4 March 2002:
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Current market price: |
GBP4.00 |
|
Book value per share: |
GBP3.41 |
|
Consensus annual earnings estimates |
|
|
March 2002: |
GBP0.33 |
|
March 2003: |
GBP0.39 |
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Annualized dividend per share: |
GBP0.26 |
What is the forecast residual income for fiscal years ended March 2002 and March 2003?