7. Lets assume Best Buy is a variable growth stock with an expected annual growth rate in dividends of 10% in year 2, 14% in years 3 & 4, and 13.5% in year 5 and a constant annual growth rate of 8% after year 5. What is your valuation of Best Buys stock today using the variable growth dividend discount model? Would you recommend buying BEST BUYs stock today and why? Use current price in #6 to help aid your recommendation. (5 pts)

Below is the current price from #6

Best Buy Activision Stock $55.40 $68.40 Current Price Estimated Price 1 year from now $75.89 $57.52 $2.00 $0.37 Annual Expected Dividend (D1)