Case #2: Equity Valuation Casey Hyunh is trying to value the stock of Resources Limited. To easily see how a change in one or more of her assumptions affects the estimated value of the stock, she using a spreadsheet model. The model has projections for the next four years based on the following assumptions. )9- 'Ta" VVVVV Sales will be $300 million in Year 1. Sales will grow at 15 peroent in Year 2 and 3 and 1t} percent in Year 4. Operating prots [EBIT] will be 1? peroent of sales in each year. Interest expense will be Sl million per year. Income tax rate is 30 percent. Earnings retention ratio would stay at 0.60. The pershare dividend growth rate will be oonstant from Year 4 forward and this nal growth rate will be 200 basis points less than the growth rate from Year 3 to Year 4. The company has 10 million shares outstanding. Hyunh has estimated the required return on Resouroes' stock to be 13 percent. A. B. C. Estimate the value of the stock at the end of Year 4 based on the above assumptions. Estimate the current value of the stock using the above assumptions. Hyunh is wondering how a change in the projected sales growth rate would affect the estimated value. Estimate the sensitivity of the current value of the stock if the sales growth rate in Year 3 and the discount rate [pick your own points and construct an appropriate data table]