Given the three EPS estimates in Problem 6, you are also given the following estimates related to the market earnings multiple:
a. Based on the three EPS and P/E estimates, compute the high, low, and consensus intrinsic market value for the S&P Industrials Index in 2013.
b. Assuming that the S&P Industrials Index at the beginning of the year was priced at 20,050, compute your estimated rate of return under the three scenarios from Part a