short cut for calculating econ income decrease, economic, question, capital, getting

dcfox83

I’m looking for a short cut to calculating economic income(question 33 in R27-P82). I think we might be able to avoid calculating the present value at time 0 and time 1. We know that the value of a share decreases when dividends are paid out. In Q33, we know that all cash flows will be paid out to bondholders and shareholders. I would think that the market value would decrease every year by these pmts to capital providers, but I’m not getting the right answers. Any ideas? If not, I guess we’ll have to do it the long way!