Calculate the stock price for your selected company using the constant growth formula and the low-end dividend growth rate you determined in Part 1. Show all calculations for this estimated stock price using the low-end dividend growth rate.

For the required rate of return (r), use the following assumptions:
For a large capitalization company (greater than $10.0 billion in market capitalization) use 10.0%.
For a mid-cap company (between $2.0 billion and $10.0 billion in market capitalization) use 12.0%.
For a small-cap company (less than $2.0 billion in market capitalization) use 15.0%.
Show your calculations.

In a similar manner, calculate another estimate of the stock price for your selected company using the constant growth formula and the high-end dividend growth rate.
Use the same assumptions for the required rate of return (r) that you used for the low-end stock price, other than using the high-end dividend growth rate.
Show your calculations.

Compare each of the two stock prices you just calculated to the current stock price per share of the company.
State whether each constant growth stock price (low-end and high-end) is above or below the current price.
State whether each constant growth stock price (low-end and high-end) indicates if the stock price is currently under-valued or over-valued in the market.
Determine your concluded stock value, based on the two calculations using the constant growth formula.

Table 1: Nike Annual Dividends for Target Corporation 

DATE	NAME	DIVIDEND	Growth rate in dividend	Decrease in dividend Growth rate
2021	Nike Inc.	1.07	12.63%	2.17%
2020	Nike Inc.	0.95	10.47%	0.21%
2019	Nike Inc.	0.86	10.26%	-1.17%
2018	Nike Inc.	0.78	11.43%	-1.47%
2017	Nike Inc.	0.7	12.90%	-1.91%
2016	Nike Inc.	0.62	14.81%	-0.08%
2015	Nike Inc.	0.54	14.89%	0.26%
2014	Nike Inc.	0.47	14.63%	-2.51%
2013	Nike Inc.	0.41	17.14%	0.00%
2012	Nike Inc.	0.35	17.14%	0.00%
Average Growth rate for Most Recent 10 years			13.63%
Average Growth rate for Most Recent 5 years			11.54%
Average Growth rate for Most Recent 3 years			11.12%