Instructions: Work out the following problems in Excel, starting from blank new Excel file. Save your Excel

file and upload to this Assignment$/$Exam on Canvas.

Your research has produced the following for the ABC Company:

ABC has promised dividends over the next $4$ years such as $D1=$$$3\mathrm{.}25,D2=$$$3\mathrm{.}75,D3=$

$$4\mathrm{.}25,$ and D$4=$ $$4\mathrm{.}75$

You have forecast that dividends will grow at a constant perpetual growth rate of $6\mathrm{.}0\%$ per

year starting in year $5.$

Systematic Risk for ABC is estimated with a Beta coefficient of $1\mathrm{.}09$ while the market risk

premium is forecasted to be $10\%$ and the risk$-$free rate is $1\%.$

Given this information, answer the following:

a$.$ What is the required return on equity for ABC $?(10$ points$)$

b$.$ What is the forecasted dividend per share value for year $5?(10$ points$)$

c$.$ What is the target price, or terminal value, for ABC in Year $4?(10$ points$)$

d$.$ What is the estimated value per share of ABC stock today? $(10$ points$)$

e$.$ If the current stock price quote for ABC is $$61,$ would you make a BUY, SELL, or HOLD

recommendation for ABC $?$ Explain why with only $1$ sentence. $(10$ points$)$