210 2004 2005 Income Statement Revenue $4,750 $5,140 Cost of goods sold 2.400 2,540 Seling general, and administrative 1,400 1,550 Depreciation 180 Goodwill amortization 10 10 Operating income $ 760 $ 830 forest expense 20 25 Income before $ 740 $ 805 Income taxes 265 295 Net income $ 475 $ 510 Earnings per shore $ 1.79 $ 1.96 Average shores outstanding (millions 265 260 Balance Sheet Cosh $ 400 $ 400 Accounts receivable 680 700 Inventories 570 600 Net property, plant, and equipment 800 870 Intangibles 500 530 Total assets $2.950 $3,100 Current liabilities $ 550 $ 600 Long term debt Total liabilities $ 850 $ 900 Stockholders' aquity 2,100 2,200 Total liabilities and equity $2,950 $3,100 Book value per shore $ 7.92 $ 8.46 Annual dividend per share 0.55 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 sustanable 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 300 300