Requirement $1.$ Based on the Dividend Discount Model $($DDM$),$ Calculate the Present Value of the firm by filling out the blanks of the spreadsheet.

As a portfolio manager of an asset management company, you are preparing ABC Company's stock valuation for $5$ year financial projection starting from $2024.$ ABC company is expected to reinvest all of the company's expected earnings from $2024$ to $2025.$ After that, the company will resume its normal dividend payout and growth rate. You are also given additional information for the projection as follows below.

Additional Information.

Return on Equity all the projected years:

$15\%$

Plowback $($Retention$)$ ratio:

$100\%($year $20242025),60\%($year $20262028),20\%($permanently after year $2028)$

Required Rate of Return of the equity: $10\%$

A$.$ Projected years of ABC Company $($$ in million $|$ projected years$)$

$2024$

$2025$

$2026$

$2027$

$2028$

Book Value of Equity $($beginning balance$)$

Earnings $($Net Income$)$ of the year

Dividends of the year

Book Value of Equity $($ending balance$)$

Permanent Value

Total Free Cash Flows by DDM

B$.$ ABC Stock Valuation by DDM

Permanent Growth Rate of Dividend after year $2028(\%)$

Present Value of the firm by DDM $($$ in million$)$

Requirement $2.$ The number of shares outstanding of the ABC company is $1$ million shares, and the price per share is being traded at $$250$ in the market. If you trust the results from this Dividend Discount Model with the reliable information above, are you investing on the stock or not? Explain why or why not.