Lady Antebella is trying to use a spreadsheet model to value the stock of Renaissance Limited. The model has projections for the next four years based on the following assumptions. Sales will be $250 million in Year 1. Sales will grow at 15% in Year 2 and Year 3 and 10% in Year 4. Operating profits (EBIT) will be 12% of sales in each year. Interest expense will be $10 million per year. Income tax rate is 21%. Earnings retention ratio would stay at 0.35. The per-share dividend growth rate will be constant from Year 4 forward and this final growth rate will be 200 basis points less than the growth rate from Year 3 to Year 4. The company has 10 million shares outstanding. Antebella uses the CAPM to estimate the cost of equity. She uses the annual yield of 2.5% on the 10-year Treasury bond as the risk-free return. She estimates the expected US equity risk premium to be 6.5%. The estimated Beta of Renaissance is 1.75. (a) Estimate the value of the stock at the end of Year 4 based on the above assumptions. (b) Estimate the current value of the stock using the above assumptions. (c) Lady Antebella is wondering how a change in the projected sales growth rate would affect the estimated value. Estimate the current value of the stock if the sales growth rate in Year 3 is 10% instead of 15%.