Question: Using the information provided in the case, develop a two-stage DDM model for Harley Davidson. Consider the appropriate sensitivities to your model inputs. What is

Using the information provided in the case, develop a two-stage DDM model for Harley Davidson. Consider the appropriate sensitivities to your model inputs. What is your target price for Harley-Davidson stock?

-For the two-stage DDM model, you may consider using 6% for the growth rate. After that use a 3% growth rate for the terminal year

EXHIBIT 8:HARLEY-DAVIDSON INC. CONSENSUS FORECASTS, 2018-2023 (US$) Consensus for 12 Months Ending July 1, 2020 Earnings per Share Dividends per Share LTM July 1, 2018 2.92 1.47 July 1, 2019 3.18 1.50 3.56 1.56 July 1, July 1, July 1, 2021 2022 2023 4.06 1.80 4.34 1.95 4.65 2.10 Note: LTM = last 12 months. Source: Harley-Davidson Inc., "Consensus Forecasts for Harley-Davidson, Inc.," Institutional Brokers' Estimate System, accessed July 29, 2019.

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