1. AK Steel Holding Corporation is a leading producer of flat- rolled carbon and carbon and stainless tubular products, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets. AK Steel Holding Corporation projects the following earnings: Year 1 Year 2 Year 3 Year 4 Year $3.85 $4.62 $5.08 $5.60 $6.20 5 The dividend payout ratio (dividends/earnings) for each year is 70%. The projected earnings growth after year 5 is 5%. If AK Steel's equity cost of capital is 9%, what is the estimated value for AK Steel's stock? Note: Use the Dividend Discount Model