Bigquiz Corporation
(in millions) ($ millions)
		2018	2019
sales			550
cost of goods sold			400
depreciation			100
interest rate			10.0%
payout			40.0%
tax rate			30.0%
account receivable		26	30
cash		20
inventory		28	32
net fixed asset		300	345
account payable		20	25
note payable		10	10
long-term debt		100	120
common stock		60	60
retained earning		184
shares outstanding			10

1. Apply two-stage dividend discount model to value stock. Suppose in the next three years, dividend will grow at 20%, then drops to sustainable growth rate forever. How much is the stock price now and how much is the stock price one year from now? What is your rate of return for holding the stock one year? How much is capital gain, how much is dividend yield?