Determine the intrinsic value of Boeing using a three-stage growth model based on the following expectations (use an Excel spread sheet to do your calculations and show formulas being used):

• Three growth-rate stages: Growth, Transition, and Mature.
• The stocks discount rate is 9%.
• Current EPS is $6.41.
• Dividend payout ratio is equal to 30% until the transition period.
• Dividend payout ratio is equal to 50% in the Maturity stage.
• Dividend payout ratio decreases by equal annual increment from 30% to 50% during the transition stage.
• Boeing will experience a growth stage for the next 10 years in which its EPS will grow at 10%.
• The length of Boeings transitional stage is five years.
• The mature growth period starts in year 16 with an assumed dividend payout ratio of 50% and with a growth rate of 6%.
• The transition period starts in year 11 with the growth rate decreasing by equal annual increments from 10% to 6%.
• The value of Boeing at the beginning of the Maturity stage (Year 16) is determine by the constant growth model (V = d/k g)).