A. Company XYZ has just paid a dividend of $3. As XYZ is a young company and successful, it is estimated that they will grow at rate of 20% for 5 years and then at 3% in perpetuity. The company faces a required return on equity of 7%. What is the current price of the companys stock using the DDM model? Use excel for all calculations (5 Marks)

B. Describe how sensitive your calculation in part A is to changes in the perpetual growth rate, the required return on equity and the initial dividend. Graph your results over a range of variables both above and below that described in part A. For which variable is the share price most sensitive? Why? Use excel for all calculations. (10 marks)

ANSWER QUESTION B please!