Data Current Stock Price 42.01 Annual Dividends (2022) 0 EPS 1.83 P/E Ratio 22.96 Next 5...

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Data Current Stock Price 42.01 Annual Dividends (2022) 0 EPS 1.83 P/E Ratio 22.96 Next 5 Years Growth 13.38% Discount Rate Used (required rate of return) 9% Return on Market 4.38% Risk-Free Rate Beta 4.62% 1.62 1.3 Part A: Constant Grown Rate Model, D0(1+g)/(i-g) Estimated Price: 1.3 Part B: Compute the calue of the firm using Dividend Model Project Dividends for the nect 5 years D PV 12345 PV Estimate price in 5 years using PE model (P5-P/E ration x EPS x (1=g)^5) DDM Value Estimate= P5 5 2.2 Calculate r using constant growth rate formula -DO(1+g)/(P+g)= P=D(1+g)/(r-g) r-g=D(1+g)/P r=D*(1+g)/P+g Data Current Stock Price 42.01 Annual Dividends (2022) 0 EPS 1.83 P/E Ratio 22.96 Next 5 Years Growth 13.38% Discount Rate Used (required rate of return) 9% Return on Market 4.38% Risk-Free Rate Beta 4.62% 1.62 1.3 Part A: Constant Grown Rate Model, D0(1+g)/(i-g) Estimated Price: 1.3 Part B: Compute the calue of the firm using Dividend Model Project Dividends for the nect 5 years D PV 12345 PV Estimate price in 5 years using PE model (P5-P/E ration x EPS x (1=g)^5) DDM Value Estimate= P5 5 2.2 Calculate r using constant growth rate formula -DO(1+g)/(P+g)= P=D(1+g)/(r-g) r-g=D(1+g)/P r=D*(1+g)/P+g