Cost of Equity
a.	Compute their cost of equity capital using the 2-stage Dividend Discount Model . Use their current price, most recent annual dividend and projected 5 (n) year earnings growth rate. Use 3% as the long term growth rate.			t	Stage 1 CF	Stage 2 Value
	n =	8	1
	D0 =	$2.15	2
	P0 =	$57.50	3
	Build your table with IF statements so if I change the number of periods for the change form short- to long-term in the table recomputes correctly. Your value for n should be able to take on any value from 2 to 16.	gs =	18.00%	4
	g =	2.90%	5
	kDDM =	10.000%	6
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b.	Find the kDDM that will set the computed price euqal to the value in E8. Paste it (As Values) in the cell below.			8
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c.	After completing part b, change kDDM back tp 10%.			12
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Data Table			14
	Build a Data Tables (You MUST use the Data Table Feature under Data/What If Analysis). Compute the sensitivity of the short-term growh rate on the computed Price. The growth should go from zero to 30 percent.			15
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				Computed price =