The information below will be needed to answer all questions.

	2009	2010
Sales ($ millions)	1000	1112
Cost of Goods Sold ($ millions)	500	556
Other Expenses ($ millions)	100	111
Depreciation ($ millions)	100	100
Interest Expense ($ millions)	50	55
Total Current Assets ($ millions)	600	700
Total Fixed Assets ($ millions)	2200	2500
Accumulated Depreciation ($ millions)	400	This can be determined from the information given
Net Fixed Assets ($ millions)	1800	2000
Total Current Liabilities ($ millions)	450	550
Long-term Liabilities ($ millions)	900	975
Common Stock	500	This can be determined from the information given Calculate the companys internal growth rate (IGR) and sustainable growth rate (SGR). Use the SGR to forecast three years of financial statements. List all assumptions made to create the forecasts. Use long-term debt as the plug. Use the internal growth rate (IGR) as a permanent growth rate in dividends and estimate the stock price using the single-stage dividend growth model. Use the financial data to find the current dividend per share. There are 3 million shares outstanding. What does the dividend growth model predict the stock price to be? How does the required return break down into its income (DY) and price (CGY) components?