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(20 pts) 5. Suppose that Airbnb, Inc. (ABNB) is selling for $115.00. Analysts believe that the growth rate for ABNB will be 30% per

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(20 pts) 5. Suppose that Airbnb, Inc. (ABNB) is selling for $115.00. Analysts believe that the growth rate for ABNB will be 30% per year for the next two years, 20% per year for the following three years, and thereafter the growth rate will be 8% indefinitely. ABNB's most recent cash dividend per share was $3.00. The dividend will grow by the same rate as the company. Stockholders require a return of 20 percent on ABNB's common stock. Required: a) Based on the above assumptions, determine the price of ABNB's common stock. b) Explain whether an investor should buy the stock.

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