1. Ecolab (ECL): The following table contains historical dividends and free cash flows for the company. Dividend Model: Calculate the growth in dividends and the average growth in dividends. Use this as your estimate of future dividend growth. Use 2022 dividend as Do. Use 10% as your stockholder rate of return (rs) estimate. Calculate the value of the stock. Calculate the value of the stock using an 8.5% rate of return. FCF Model: Calculate the TVM growth rate. This is not useful, so you will use 4% as your g assumption. Use a discount rate of 7%. Use the average of all FCFs as your FCF. The debt for this company is $9,026.5M and the number of shares is 284.7M. Find the value of one share of stock. Calculate rs = (D1/P0) +g: The current stock price is $156.87. Use this stock price to calculate your expected rate of return using the dividend model assumptions. CAPM Model: The stock beta is .98. Use beta to calculate the rate of return. Assume the risk-free rate is 4.25% and the market risk premium (rm-rf) is 8%. ELC 2017 2018 2019 2020 2021 2022 DIV 1.52 1.69 1.85 1.89 1.95 2.06 FCF 1403.1 M 1093.5 M 1472.0 M 1972.1 M 1224.8 M 1470.8 M