a manufacturer of home appliances, just reported earnings per share of $2.10, on which it paid dividends per share of $1.05. Earnings are expected to grow 15% a year over the next 5 years, during which period the dividend payout ratio is expected to remain unchanged. After year 5, the earnings growth rate is expected to drop to a stable rate of 6%, and the payout ratio is expected to remain the same. The firm has a beta of 1.40 currently, and it is expected to have a beta of 1.10 during the stable growth period. The Treasury bond rate is 6.25%. The equity risk premium is 5.5%. d. Estimate the terminal value of App Inc at the end of year 5 (3 marks) e. What is the value of App Inc. today using the dividend growth model? (5 marks)