Beta 1 means Zero Volatility.

.

If ever D/E = 1, then

CICC Factor

= 1.04716×(1+1×1.10)÷(1+1)

= 1.099518

.

Terminal Factor

= (1+0.046+0.04716)÷1.099518

= 0.9942174662

.

Then,

Discounted Terminal Earnings Model (10Y)

= EPS × Terminal Factor × (1 - Terminal Factor¹⁰) ÷ (1 - Terminal Factor)

10.3062664284×0.9942174662×(1-0.9942174662^10)÷(1-0.9942174662)

= USD 99.8410755359

.

Compounding is not linear, CICC & Terminal Factor as well not linear.

.

The non-linearity gives rise to the 8th Wonder, Compounding Interest.

.

The non-linearity also gives rise to the 8th Disaster, Discounting Interest.

.

It is double-edged blade, Compounding Interest and Discounting Interest are a pair of inseparable Ying and Yang twins.

.

If they are equals, peace.

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Do the math, if Terminal Factor progresses to the limit→1, let's say 0.999999999999, then,

.

Discounted Terminal Earnings Model (10Y)

= EPS × Number of Years (IF Terminal Factor progresses to the limit→1)

.

10.3062664284×0.999999999999×(1−0.999999999999^10)÷(1−0.999999999999)

= 103.06266428343

.

10.3062664284 × 10

= 103.062664284

= 10 Years of Annual 10.3062664284 adding up

.

The beauty of series summamarion of math.