Why does this method for computing $e^{\textbf{A}t}$ work? (from Shaum's Outlines: Differential Equations)

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Immediately after defining $e^{\textbf{A}t}$ using the exponential series, chapter 16 of Shaum's Outlines: Differential Equations (3rd Edition) gives a more efficient method for actually computing $e^{\textbf{A}t}$ for any square matrix $\textbf{A}$. However, the book does not give any hint about why the method works, aside from a throwaway remark that it follows "with some effort" from the Cayley-Hamilton theorem that the infinite series for $e^{\textbf{A}t}$ is equivalent to a polynomial in $t$.

If this algorithm had a distinctive name, it would be easy to search the web for more information, but I am not aware if it has a name or not. Here is the algorithm:

  1. Assume that the desired matrix can be written as $e^{\textbf{A}t} = \alpha_{n-1}\textbf{A}^{n-1}t^{n-1} + \alpha_{n-2}\textbf{A}^{n-2}t^{n-2} + \ldots + \alpha_2\textbf{A}^2t^2 + \alpha_1\textbf{A}t + \alpha_0\textbf{I}$, where each $\alpha_i$ is some function of $t$.

  2. Define $r(\lambda) = \alpha_{n-1}\lambda^{n-1} + \ldots + \alpha_2\lambda^2 + \alpha_1\lambda + \alpha_0$. Then, for any eigenvalue $\lambda_i$ of $\textbf{A}t$, $e^{\lambda_i} = r(\lambda_i)$. (Why? I haven't the foggiest idea.)

  3. Find all the eigenvalues of $\textbf{A}t$. Substitute them one by one into the equation in (2) to get $n$ equations in the $\alpha$'s. Solve this system of equations to get the $\alpha$'s. Then substitute them into the equation in (1) and solve for $e^{\textbf{A}t}$.

Step 3 is trivial. However, it's not at all clear why $e^{\textbf{A}t}$ can always be written in form (1), and even if it can, it is even more baffling why the relation in (2) should be true.

Can anyone explain?

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It's best to regard $B=At$ as a whole (or assume $t=1$ as shown in the comment), and consider the problem of computing $$e^{B}=\sum_{m=0}^\infty\frac{1}{m!}B^m$$

Because of Cayley-Hamilton, we know that $B^m$ can be written as a polynomial of order $<n$. Hence we may assume $$e^B = \sum_{m=1}^{n-1}\alpha_m(B)B^m$$

If $\lambda$ is an eigenvalue of $B$, then take an eigenvector $v$, we got $Bv=\lambda v$, hence $$e^Bv=\sum_{m=0}^\infty \frac{1}{m!}B^mv=\sum \frac{1}{m!}\lambda^nv=e^{\lambda} v$$

$$e^Bv=\sum\alpha_mB^mv=\sum\alpha_m\lambda^mv=(\sum\alpha_m\lambda^m)v$$

By comparison, we get $e^{\lambda}v=(\sum\alpha_m\lambda^m)v$ and due to $v\not=0$, we must have $$e^{\lambda}=\sum_{m=0}^{n-1}\alpha_m\lambda^m$$

In fact, step (3) is problematic, since $B$ may not have $n$ distinct eigenvalues. (If $B$ does, then to diagonalize $B=P^{-1}\Sigma P, e^B=P^{-1}e^{\Sigma}P$ would be faster.)