1. Calculate the expected price for this company using a 2-stage Dividend Growth Model. The first stage lasts 3 years and the second stage lasts indefinitely. The current dividend is given in the 2019 column. G1 is based on the rate of dividend growth over the last 3 years while G2 = 5%. Assume a required rate of return of 8%.

Information given in column 2019' is at time zero and also represents trailing twelve month (ttm). 2016 2017 2018 2019 Dividend $0.85 $0.90 $0.95 $1.00 EPS $2.125 $2.25 $2.375 ROE 18% 19% 18% P/E BVPS Sales/Share FCF/Share EBITDA 23,000 22,000 23,000 Debt 45,000 50,000 55,000 50,000 Cash 10,000 12,000 8,000 10,000 FCF 12,500 12,500 15,000 17,500 Information given in column 2019' is at time zero and also represents trailing twelve month (ttm). 2016 2017 2018 2019 Dividend $0.85 $0.90 $0.95 $1.00 EPS $2.125 $2.25 $2.375 ROE 18% 19% 18% P/E BVPS Sales/Share FCF/Share EBITDA 23,000 22,000 23,000 Debt 45,000 50,000 55,000 50,000 Cash 10,000 12,000 8,000 10,000 FCF 12,500 12,500 15,000 17,500