Question: Two Stage Model (5 years) for WBA Inputs: Current Dividend 1.89 Growth Rate 1 0.185 Growth Rate 2 0.095 Beta 0.85 Market Return 0.12 Risk-
| Two Stage Model (5 years) for WBA | |||||
| Inputs: | |||||
| Current Dividend | 1.89 | ||||
| Growth Rate 1 | 0.185 | ||||
| Growth Rate 2 | 0.095 | ||||
| Beta | 0.85 | ||||
| Market Return | 0.12 | ||||
| Risk- Free Rate | 0.02 | ||||
| CAPM Return | 0.105 | ||||
| Year | 1 | 2 | 3 | 4 | 5 |
| Dividend Forecast | |||||
| Forecasted Stock Price | |||||
| Value (NPV) | |||||
| Market Price | 47.72 | ||||
Given this model, calculate the dividend forecast, the forecasted stock price , and the value of the stock and discuss the results
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