1 What is Disney stock's intrinsic value using each of the four models? o Constant Growth Model: Hint - What happens when you calculate the required rate of return for Disney shareholders minus Disney's growth rate (r-9), which is the denominator of the Dividend Discount Model? Can you calculate a stock price for Disney with this information? If so, please calculate the intrinsic value. (2 points) Value of stock=1.238/(28%-17.7%)= $12.02 o Multi-Stage Growth Model: Hint - think of the characteristics of the Multi-Stage Dividend Discount Model, and for what industries this model is used. Based on your reading about the corporate history of Disney, do you think you can use this model? If so, please calculate the intrinsic value. (2 points) 1 Discounted Dividend Model: Hint - use last cash flow + Price (using PE formula) (1 + r) (4 points) Market Multiples Approach: Hint - calculate the "PE Ratio" through using weighted income and the appropriate segment "multiple. Subsequently, use your calculated PE "multiple" and appropriate Disney EPS to produce the intrinsic value of the Disney common stock. (11 points) Reconcile Disney stock's intrinsic value, considering the strengths and weaknesses of each valuation approach. That is, which one of the four approaches in the last question is the most appropriate to use? 1 What is Disney stock's intrinsic value using each of the four models? o Constant Growth Model: Hint - What happens when you calculate the required rate of return for Disney shareholders minus Disney's growth rate (r-9), which is the denominator of the Dividend Discount Model? Can you calculate a stock price for Disney with this information? If so, please calculate the intrinsic value. (2 points) Value of stock=1.238/(28%-17.7%)= $12.02 o Multi-Stage Growth Model: Hint - think of the characteristics of the Multi-Stage Dividend Discount Model, and for what industries this model is used. Based on your reading about the corporate history of Disney, do you think you can use this model? If so, please calculate the intrinsic value. (2 points) 1 Discounted Dividend Model: Hint - use last cash flow + Price (using PE formula) (1 + r) (4 points) Market Multiples Approach: Hint - calculate the "PE Ratio" through using weighted income and the appropriate segment "multiple. Subsequently, use your calculated PE "multiple" and appropriate Disney EPS to produce the intrinsic value of the Disney common stock. (11 points) Reconcile Disney stock's intrinsic value, considering the strengths and weaknesses of each valuation approach. That is, which one of the four approaches in the last question is the most appropriate to use