[2] Dividend Discount Model in stable growth Dividends per share DIVo Cost of equity E(for investor D Cost of equity r e for investorE Estimated perpetual earnings growth rate g (question a) Estimated perpetual earnings growth rate g (question c) 1.10 14% 15% 5.0% 6.0% (a) Next year's expected dividend per share DIV (b) Stock price Po valuation according to investor D (c) Stock price Po valuation (with 15% discount rate) (d) Stock price Po valuation (with 6% growth rate) e) Explanation [5 points