Current Stock Price$=905\mathrm{.}38$ Current forward dividend Obtained$=5\mathrm{.}20(0\mathrm{.}57\%)$

Number of Shares Outstanding$=900\mathrm{.}4$M Payourt Ration$=69\mathrm{.}07\%$

Next $5$ years $($per annum$)=62\mathrm{.}63\%$ To determine the value based on the dividend discount model:

a$.$ Create a timeline in Excel for seven years $($June $2024$ or year $0,2025,$

$2026,2027,2028,2029,2030).$

b$.$ Use the dividend obtained from Yahoo!Finance as the current $(2024)$

dividend and then forecast the next $5$ dividends $($to $2028)$ using the $($next$)$

five$-$year growth rate estimated by analysts.

c$.$ Determine the long$-$run growth rate based on LLY$$s payout ratio and

return on new investment: growth $=$ return on new investment $*$ retention

ratio.

d$.$ Use the long$-$run growth rate to forecast the dividend in $2030$ from the

dividend in $2029.$

e$.$ Determine the stock price at the end of year $2029$ using the $2030$ dividend

and the long$-$run growth rate.

f$.$ Determine the current intrinsic value $($PV$)$ as of time $0.($Do not include

the current $2024$ dividend, it is past, in this calculation$)$