The following information has been collected about DeeAnn Company:

Most recent annual cash dividend per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.35

Dividend growth rate over the past five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5%

Most recent earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.80

Average P/E ratio of similar firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Required rate of return on equity capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14%

Free cash flow for most recent year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,800

Annual growth rate in free cash flow over past five years . . . . . . . . . .. . . . . . . . . . . . . . . . . . 25%

Number of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Length of time until terminal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 years

Estimate a price per share for DeeAnn’s stock using the following equity valuation models.

1. Constant future dividends

2. Constant dividend growth

3. Price-earnings multiple

4. Discounted free cash flow

5. Which of the four estimates do you think is most reliable? Why?