A rapidly growing firm is currently paying a dividend of $1.75. The dividend growth rate is expected to be 8% for the next 3 years. The dividend growth rate is then expected to be 5% for the next 2 years. The dividend growth rate after the first 5 years is expected to be 2% annually. The expected return on the market is 7%, the risk free rate is 3% and the firms Beta is 0.90.

1. Calculate the estimated price (intrinsic value) for a share of this firms stock.
2. Use Goal Seek to determine what the current dividend would need to be to yield an estimated price (intrinsic value) of $60.