need help w tables

1. Since 2014, Abercrombie & Fitch (NYSE: ANF) has been paying annual dividends of $0.80 per share. Assume ANF has a cost of equity capital of 9%. The stock has recently traded around $12 per share. Required: a. Assuming the dividend will continue to stay at $0.80 per share on a continuing basis, what is the estimated value per share for ANF? b. Given the difference between the estimated value and the trading price, what inferences can be made? c. What conclusions might we make about the appropriateness of the constant dividend model for ANF? 3 a. Estimated value per share for ANF 4 Dividend 5 Growth in dividends 6 Cost of equity capital re 7 Current stock price 8 $0.80 0.0% 9.0% $12.00 117 F G H I J K L M N O B End of 2017 C End of 2018 D E End of Terminal 2019 period 9 10 Anticipated dividends 11 Present value factor at 9% 12 Present value as of start of 2017 13 Cumulative present value 14 15 PV of dividend in perpetuity 16. 2. Refer to the information above and answer the following questions: a. Assuming that dividends for ANF will continue to stay at $0.80 per share for the next two years and then are expected to grow at 2.5% per year on a continuing basis, what is the estimated value per share for ANF? b. Given the difference between the estimated value and the trading price, what inferences can be made? c. What conclusions might we make about the appropriateness of the increasing perpetuity dividend model for ANF? 29 a. Estimated value per share for ANF 50 Dividend 31 Growth in dividends, after 2 years 2 Cost of equity capital re 3 Current stock price $0.80 2.5% 9.0% $12.00 F G NA N B End of 2017 C End of 2018 D E End of Terminal 2019 period 5 Anticipated dividends - Present value factor at 9% 3 Present value as of start of 2017 Cumulative present value b. Given the difference between the estimated value and the trading price, what inferences can be made? I C tin c. What conclusions might we make about the appropriateness of the increasing perpetuity dividend model for ANF