1. Based on the information below, compute an estimated price range for this company at the end of 2020 using price-ratio analysis. Assume that the historical average growth rates will remain constant into the foreseeable future. Year 2014 2015 2016 2017 2018 2019 Price $94.5 $100.4 $99.10 $97.9 $121.5 $136.80 EPS 4.34 5.05 5.22 6.06 7.00 8.00 CFPS 7.27 8.24 8.71 10.12 11.8 13.10 SPS 52.6 58.52 57.90 60.69 71.6 78.70 2. In the chapter, a considerable amount of time was spent on estimating a stocks price using dividend discount models. Suppose the dividends per share over the same period were $1.00, $1.08, $1.17, $1.25, $1.35, and $1.40, respectively. Compute the expected share price at the end of 2020 using the perpetual growth method. Assume the market risk premium is 7.5 percent, Treasury bills yield 3 percent, and the projected beta of the firm is 1.10. 3. Compare the estimated price range of the stock computed in question 1 to what you determine in question 2. Offer an explanation as to why such a price disparity between the two models could occur.