For McDonald's (Ticker Symbol MCD)

Use the answer box below to summarize finding of a second stock, using the two stage dividend growth model. Mention :

• the ticker symbol
• list the five dividends
• calculate the average dividend,
• estimate the sustainable growth rate.
• estimate k based on 10% market return and 2% risk-free rate, use CAPM.

Based on the above state your assumptions regarding:

• g1
• g2
• T
• k
• calculate the target price.