Income Statement (Millions)
	1967	1968	1969	1970	1971
Sales	3079	3455	3632	3618	3848
Net Income	314	372	356	334	357
Shares Out	46158	46285	47076	47257	47281
Balance Sheet (Millions)
Total Asset	3071	3289	3453	3740	3999
Total Debt	125	162	186	216	307
Total Equity	2682	2859	3040	3180	3402
Per Share
Book Value	50.22	53.09	55.53	57.67	60.23
Market Value	163.25	162.75	133.38	113.38	143.75
Key Financial Ratios
P/E Ratio	24.2	20.4	17.5	16.5	19.6

Using the DDM method, Estimate Acme Corp growth rate to find the cost of equity. Outline your explanation and assumptions in determining the growth rate.

Steps to find Cost of Equity

Price of Share -

Estimate the Growth Rate (Outline your method in finding this) -

Last Dividend Paid -

Estimated Dividend Based on Growth Rate -

Cost of Equity = Estimated Dividend/Price of Share + Growth Rate