Koltrak's earnings and dividends, will grow at 32% for 2 years and 13% respectively. a. Determine the value of PT Koltrak, using DDM. b. Calculate the current value of a share of Koltrak stock by using a two-stage dividend discount model and the data from Table A and B. Table A Income Statement Revenue Depreciation Other operating costs Income before taxes Taxes Net Income Dividends Earnings per share Dividend per share Common shares outstanding (millions) 2018 474 20 368 86 26 60 18 0.714 0.214 84 2019 598 23 2460 115 35 80 24 0.952 0.286 84 2018 201 474 2019 326 489 Balance Sheet Current assets Net property, plant and equipment Total Assets Current Liabilities Long-Term Debt Total Liabilities Shareholders' equity Total Liabilities & Equity Capital Expenditures 675 57 0 57 618 675 34 815 141 0 141 674 815 38 Table B. Required rate of return on equity 14% Growth rate of industry 13% Industry P/E ratio 26