3M Company was founded in 1902 in the U.S. In addition to adhesives, the company also produces personal protective equipment and medical products. The outbreak of novel coronavirus recently makes 3M masks one of the most popular masks around the world. @) Due to the potential negative economic impact of the pandemic, you and your friend have different estimates on 3M's dividend payment. Estimate A You estimate that 3M's dividend payment will be immediately down to 50 this year (year C) and the next two years. But 3M will resume dividend payment and pay a dividend of $0.30 per share 3 years from today, then to increase the dividend payment at a rapid rate of 25% in year 4 and a rate of 50% in year 5. You believe that the increase of dividend will then become constant at 7% from year 6. Estimate B Your friend also predicts that the dividend payment will be immediately reduced to So this year (year O). However, she thinks that the company will resume dividend payment of $0.15 per share next year. However, the dividend growth will become negative in the following two years, i.e., -10% in year 2 and -15% in year 3, respectively. In years 4 and 5, your friend expects the dividend growth to be 25% and 50%, respectively, and to be 8% from year 6. You and your friend observed that the U.S. Federal Reserve cut the benchmark interest rate to % in response to the coronavirus. Both of you find that the nominal risk-free rate declines to 1.05% while the market return is 3.26%. The beta of 3M is 3.50, Suppose 3M's stock now is trading at $25 per share. Given the information above, which estimate is more precise