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5.) (16 points) Assume it is currently the beginning of the year 2022. A.) Given an investment horizon of 2027, and the data provided below,

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5.) (16 points) Assume it is currently the beginning of the year 2022. A.) Given an investment horizon of 2027, and the data provided below, use a multistage dividend discount model to estimate the intrinsic value of the company's stock. Assume that after 2027 that the growth rate of dividends will remain constant. Use linear interpolation to estimate any intermediate/unknown dividends. Show your work. B.) If the stock is currently selling for $68.00 per share, is this stock a good buy based on your intrinsic value estimate given in part A? The dividend payout ratio for the company is currently 36.00% The return on equity for the company is 9.00% Dividends per share are estimated to be $1.00/year in 2023 and $2.00/year in 2027 For 2022, the risk-free rate is approximately 2.90%, and expected to remain constant The forecast for the market risk premium is 6.00% The beta for the company is 0.90 5.) (16 points) Assume it is currently the beginning of the year 2022. A.) Given an investment horizon of 2027, and the data provided below, use a multistage dividend discount model to estimate the intrinsic value of the company's stock. Assume that after 2027 that the growth rate of dividends will remain constant. Use linear interpolation to estimate any intermediate/unknown dividends. Show your work. B.) If the stock is currently selling for $68.00 per share, is this stock a good buy based on your intrinsic value estimate given in part A? The dividend payout ratio for the company is currently 36.00% The return on equity for the company is 9.00% Dividends per share are estimated to be $1.00/year in 2023 and $2.00/year in 2027 For 2022, the risk-free rate is approximately 2.90%, and expected to remain constant The forecast for the market risk premium is 6.00% The beta for the company is 0.90

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