bash version 4
way:
#!/usr/local/bin/bash
while IFS="." read -r -a line ; do
for ((i=0; i<${#line[@]}; i++)) do
if [[ $i > 0 ]]; then
temp=$(echo ${line[$i]/ /})
echo -n "${temp^}. "
else
echo -n "${line[$i]^}. "
fi
done
echo
done < file