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Hello! I have another part/questionto that last assignment you helped mewith beforethat my professor assigned me. Can you please help me with this as well?

Hello! I have another part/questionto that last assignment you helped mewith beforethat my professor assigned me. Can you please help me with this as well? Thank you!

Use the dividend-discount model to estimate the value of a share of Netflix's stock and compare this estimate to the current market value. To do this, you will need to do the following:

  1. Estimate the firms stock price using the dividend-discount model: Use an investment source and find: 1) the current dividend; 2) analysts estimate growth rate for the next five to ten years; 3) an alternative growth estimate using the firms 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).
  1. Compare your result to the current market price of your firms stock. Provide analysis and an explanation of how they compare and explain any differences you observe.

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