Objective 1: Find the following:*Annual Earnings per share growth rate*Price/Earnings Ratio*Market/Book Ratio

LONG METHOD

1977 $100.00 $824.001982 $106.00 6.2% 1.17% $1,180.001987 $109.00 7.1% 0.56% $1,769.001992 $143.00 7.9% 5.58% $2,483.00

Formulas:

Annual Earnings per share growth rate

P/E Ratio Col. (6)/ Col. (2)

Market/Book Ratio Col. (6)/ Col. (5)

Table 2: Georgia Atlantic Company Selected Company and Industry Data

Year (1)

EPS (2)

Industry CAGR (3)

Annual Earnings per share growth rate

(4)Book Value/Share

(5)

(EPS beg./EPS end)^1/t-1 t=5 years

Price per Share /EPS

Price per Share /Book Value per

Share

$1,253.00 16.8 12.53 2.5 1.52$1,360.00 17.9 12.83 2.6 1.15$1,597.00 19.1 14.65 2.9 0.90$1,902.00 16.5 13.30 2.5 0.77

1.17%

Table 2: Georgia Atlantic Company Selected Company and Industry Data

Price/Share (6)

Industry P/E Ratio (7)

P/E Ratio (8)

Industry M/B Ratio (9)

M/B Ratio (10)

THE FINANCIAL CALCULATOR METHOD TO GET ANNUAL EARNINGS PER SHARE GROWTH RATEN PMT PV FV Annual Earnings Per Share Growth Rate5 0 100 -106 1.17%

5 0 106 -109 0.56%

5 0 $109.00 -$143.00 5.58%