Chapter 6-Assignment 1 ( 10 points) John Smith from Credit Suisse has the following forecasts on XXY Inc. between 2019-2021 at the end of 2018. - Operating Margin is 45% and fixed indefinetely - Interest Expense is 12% of Sales Per Share and fixed indefinetely - Interest income is 4% of Sales Per Share and fixsed indefinetely - Retention Ratio is 60% and fixed indefinetely - Tax rate is 21% - Risk free rate is 4%, beta is 1.6, market risk premium is 5% - Long Term Expectations: After 2021, XXY's growth is forccasted to be fixed at 12% for 5 years and then drop to 8% and stay at that level thereafter. Please find the stock price at 2018 using AEG model based on above expectations. (You need to show your financial graph, financial models and work to get full credic. Fxcel solutions are NOT accepted) Chapter 6-Assignment 1 ( 10 points) John Smith from Credit Suisse has the following forecasts on XXY Inc. between 2019-2021 at the end of 2018. - Operating Margin is 45% and fixed indefinetely - Interest Expense is 12% of Sales Per Share and fixed indefinetely - Interest income is 4% of Sales Per Share and fixsed indefinetely - Retention Ratio is 60% and fixed indefinetely - Tax rate is 21% - Risk free rate is 4%, beta is 1.6, market risk premium is 5% - Long Term Expectations: After 2021, XXY's growth is forccasted to be fixed at 12% for 5 years and then drop to 8% and stay at that level thereafter. Please find the stock price at 2018 using AEG model based on above expectations. (You need to show your financial graph, financial models and work to get full credic. Fxcel solutions are NOT accepted)