2004 2005 $4,750 2,400 1,400 180 10 $ 760 20 $ 740 265 $ 475 $ 1.79 265 $5,140 2,540 1,550 210 10 $ 830 25 $ 805 295 $ 510 $ 1.96 260 Income Statement Revenue Cost of goods sold Selling, general, and administrative Depreciation Goodwill amortization Operating income Interest expense Income before taxes Income taxes Net income Earnings per share Average shares outstanding (millions) Balance Sheet Cosh Accounts receivable Inventories Net property, plant, and equipment Intangibles Total assets Current liabilities Long-term debt Total liabilities Stockholders' equity Total liabilities and equity Book value per share Annual dividend per shore $ 400 680 570 800 500 $2,950 $ 550 300 $ 850 2,100 $2,950 $ 7.92 0.55 $ 400 700 600 870 530 $3,100 $ 600 300 $ 900 2,200 $2,100 $ 8.46 0.60 The table shows the actual 2004 and estimated 2005 financial statements for fiscal year ending December 31($ millions, except per-share data) Using the information, calculate the growth rate of the firm on December 31, 2005. Assumes this growth rate is constant over time, what should be the intrinsic value of the stock on December 31, 2005 if the required return on the stock is 18% using constant grow DDM