A. Based on the information below, compute an estimated price range for this company at the end of 2020 using price-ratio analysis. Assume that the historical average growth rates will remain constant into the foreseeable future.

Year	2014	2015	2016	2017	2018	2019
Price	$94.5	$100.4	$99.10	$97.9	$121.5	$136.80
EPS	4.34	5.05	5.22	6.06	7.00	8.00
CFPS	7.27	8.24	8.71	10.12	11.8	13.10
SPS	52.6	58.52	57.90	60.69	71.6	78.70

B. In the chapter, a considerable amount of time was spent on estimating a stocks price using dividend discount models. Suppose the dividends per share over the same period were $1.00, $1.08, $1.17, $1.25, $1.35, and $1.40, respectively. Compute the expected share price at the end of 2020 using the perpetual growth method. Assume the market risk premium is 7.5 percent, Treasury bills yield 3 percent, and the projected beta of the firm is 1.10.

C. Compare the estimated price range of the stock computed in question 1 to what you determine in question 2. Offer an explanation as to why such a price disparity between the two models could occur.