1. Estimate the Target stock price using the dividend-discount model: find: 1) the current dividend; 2) analyst's estimate growth rate for the next five to ten years; 3) an alternative growth estimate using the firm's historical growth rate or the formula "g=ROE x b".
2. Use your estimate of the cost of equity in the WACC for the rE part of your formula: Combine the above information into the dividend-discount model (DDM).
3. Compare your result to the current market price of your firm's stock. Provide analysis and an explanation of how they compare and explain any differences you observe.

Cost of Debt[Source: http://finra-markets.morningstar.com/BondCenter/Results.jsp]
Bond CUSIP:	87612EBG0
Date Issued:	10/6/2017
Current Market Price:	110.82
Face Value:	100.00
Coupon Rate :	3.92%
Coupon Frequency :	Semi-Annual
S&P Moody's Rating:	A/A2
YTM:	(FV-PV)/n(FV+PV)/2
Coupon:	1.96
10/6/17 to 10/9/2021:	4 years
N:	8
Equal:	=1.96+(100-110.82)/8/(100+110.82)/2 =0.6498%
Cost Of Debt:	0.6498%*2=1.2997%
Cost of Equity[Source https://finance.yahoo.com/quote/TGT?p=TGT]
Using CAPM:	Re = Rf + beta x (Rm - Rf)
Beta:	1
RF:	3.7869%
RM:	7.9731%
RE:	7.9731%
WACC= (Re x We) + (Rd X Wd) (1-Tax Rate)
Re:	7.9731%
Rd:	1.2997%
Capital StructureFrom https://www.morningstar.com/stocks/xnys/tgt/financials company's
Debt:	1.03
Equity:	1
Debt + Equity	2.03
Equity:	49.26%
Debt:	50.74%
Tax Rate:	19.6%
WACC	4.46%