Question 2 Estimate the current stock price (P) using the dividend Model with the following data: Beta: 1.3 T-Bill Rate:4% Market Premium: 6% DO: $1.25 Growth Year 0-1: 20% Growth Year 1-2: 15% Growth Year 2-3: 10% Constant Growth After Year - 3: 4% Answers: A) $7.22 B) $11.35 C)$15.95 D)$18.73 E)$20.15 F)$22.18 G)$25.30 Question 3 Assuming the P/E ratio stays unchanged, use the information below to determine by how much will the stock price change one period in the future. P =$15.00 EPS, = $2.00 The next Earnings per Share (EPS, ) is expected to increase by $0.06 By how much will the stock price change from P. to P, ? Answers: A) $15.45 B)$15.06 C)$7.50 D)$0.06 E)$0.45 F)$-0.06 G)$-0.45 H)$2.06 $-2.06