assume that the company's income to be $2000 in the coming year and to grow at the rate of 5% in every subsequent year into infinity. Also, assume that the company's common equity as of the end of the most recent fiscal year is $12000 and the investment needed to support the growth in net income causes shareholders' equity to increase by 5% each year. Assume company is an all-equity firm that is all financing comes from stockholders.In this case the company's balance sheet has net operating assets (NOA) of $12000 shareholders' equity of $12000 and zero net financial obligation(zero net debt).

a.compute dividend (or free cash flow to equity holders)for the coming year and the rate of growth in dividends for every year after.

b. Use the dividend discount(i.e free cash flow to equity investor)valuation model to estimate the company's current stock price.