1 You are given the following information the "Gotta Have It Company" Dividend in the Current Year = $1.55 Expected growth rate of Dividend over the next 5 years is 6.50% Expected growth rate of the Dividend in the Residual Period (beyond forecast year 5) is 5.00% 2 You are given the following market information Risk Free Rate of interest is 2.25% Equity Market Risk Premium is 7.00% The Gotta Have It Company has a Beta of 1.20 3 You are to ( each answer is worth 1 point) Calculate the Gotta Have It Company's cost of equity (KEQUITY) Forecast the Annual Dividend for the next five (5) years Forecast the future value of the Residual Period at the end of the Forecast Period. Calculate the present value of the Forecast Period Calculate the present value of the Residual Period Calculate the Inherent Value of a common share of the Gotta Have It Company 4 The current market price of the Gotta Have It Company is $20.00 per share. Based on your analysis, should you buy more? (Worth 1 point)