Estimating the stock value. (10 marks) Using the Discounted dividend model (DDM) estimate the intrinsic value of the firms' stocks using the following steps:  Estimate the dividend growth rate using the actual growth rate for the last 5 years.  Estimate the required rate of return using the CAPM formula (assume risk free rate is 5% - the average T bill rate over the last five years)  Use the DDM to find the stock's intrinsic value.  Compare the calculated value with the stock's current price and make a comment. III. Estimating cost of capital. (10 marks) Estimating Cost of Capital (WACC)  What is the book value of debt and equity?  What are the costs of debt and Equity?  What are the weights of debt and equity?  What is the cost of capital for the firm? (Assume tax rate is 40%)