Apex Financial Ltd. has completed a fundamental analysis of Spark Energy Inc. Spark Energy is a young company and expects to invest heavily in facilities and research and development during the next three years. It expects to reap the benefits of its research and development during years 4 and 5. However, it expects rivals to enter the market and margins and profitability to stabilize at a lower level after year 5. The details of the analysis are presented below: Period Turnover Leverage 3.0 Years 1-3 Year 4 and 5 Year 6 onwards Margin 1% 15% 5% 0.75 3 1.4 Dividend Payout Ratio 0,05 0.1 0.5 1.0 L The dividend for the most recent year end for Spark Energy (i.e. Do) is $3. The beta for Spark is 1.7, the risk free rate is 1.4% and the market risk premium is 8%. Determine the current stock price for Spark Energy using the Dividend Discount Model method. Apex Financial Ltd. has completed a fundamental analysis of Spark Energy Inc. Spark Energy is a young company and expects to invest heavily in facilities and research and development during the next three years. It expects to reap the benefits of its research and development during years 4 and 5. However, it expects rivals to enter the market and margins and profitability to stabilize at a lower level after year 5. The details of the analysis are presented below: Period Turnover Leverage 3.0 Years 1-3 Year 4 and 5 Year 6 onwards Margin 1% 15% 5% 0.75 3 1.4 Dividend Payout Ratio 0,05 0.1 0.5 1.0 L The dividend for the most recent year end for Spark Energy (i.e. Do) is $3. The beta for Spark is 1.7, the risk free rate is 1.4% and the market risk premium is 8%. Determine the current stock price for Spark Energy using the Dividend Discount Model method